They continue to climb without brake i grain prices tender and some corn in Italy, recording record after record. This was communicated by Cai-Consorzi Agrari d'Italia, according to the weekly revelations of the Bologna Commodity Exchange that compared to the previous week, the prices of soft wheat and corn have grown respectively by 17% and 23%, breaking through for the first time in history Italian quota 400 euros per ton.
The war between Russia and Ukraine has not only caused gas and oil prices to soar. Since the end of February there has been a new sharp increase in the price of wheat and maize, of which Ukraine and Russia are major producers and exporters (together they represent 29% of wheat exports and 19% of maize). But Hungary's decision also made the scenario worse limit the export of cereals towards EU countries to ensure coverage of their domestic needs and limit the effects of price increases. A decision that could have devastating effects on the Italian milling industry, which may no longer be able to guarantee the production of common wheat flour in the volumes required by the market. Italy, in fact, imports almost 30% of its soft wheat needs from Hungary.
The prices of soft wheat and corn increase, the price of durum wheat remains unchanged
Tornado with soft wheat rises by 60 euros per ton in a week, stopping at between 402 and 411 euros per ton, with peaks of 435 euros for wheat with a higher protein content. While corn reaches 405 euros per ton with an increase of 75 euros compared to the last quotation last week. Increases, however, also for thebarley (+25% at 384 euros per ton of quotation) for the sorghum (+23%, from 308 to 378 euros per ton) and for the soy (+4,5% to 688 euros per ton). The price of durum wheat remains unchanged, between 510 and 515 euros per ton, stable for a few weeks now.
Compared to the findings of the last week before the start of the war (February 17) soft wheat has undergone a surge of 31,4%, maize 41%, sorghum and barley 38%, soybeans 9,5 %.
Italy imports 64% of soft wheat for bread and biscuits, 44% of durum wheat necessary for pasta, 47% of corn and 73% of soybeans, the latter two products are especially essential for food animal.
At the origin of the increases there is also the climate and the expensive fuel
The impact of the increase in production costs has been weighing on the food sector for months - with the soaring prices of fertilisers, energy, logistics and packaging materials, just to name the main ones - and concern about drought underway in all central-northern areas but still before the hot summer of 2021. Therefore, the current surge therefore comes after a period in which the climate crisis he had already raised prices. Added to these difficulties was the complex geopolitical situation and the instability of the markets.
Consorzi Agrari d'Italia points out that the cost of agricultural products affects 10% of the price of the final product to the consumer, any short-term increases in products deriving from soft wheat, such as bread, flour and biscuits, would be mainly due to high energy and to the price increases of transport, packaging, fuel.
In terms of stocks, based on projections by the United States Department of Agriculture, if the European Union proves united, without harmful protectionist impulses from individual countries, there will be no problems in supplying agricultural products for Italy until at the start of the next campaign.
