New wheat crop: what to expect from prices

With the completion of preparations for the new wheat crop, the agricultural sector of Ukraine enters the period of greatest interest in the prices of this strategically important crop. The introduction of new technologies, climatic conditions and global trends affect forecasted wheat prices.

The first factor to pay attention to is weather conditions. Ukraine is known for its sharp climatic fluctuations, which can significantly affect the yield. Adverse weather conditions, such as drought or rain, can lead to lower yields, which in turn can increase product prices.

The second factor is global trends in the world market. Changes in supply and demand, political conflicts, trade agreements and other geopolitical factors can affect wheat prices. For example, increased demand from importing countries may raise prices, while increased production in other countries may lower them.

The third factor is technological progress in agriculture. The introduction of new technologies, such as genetically modified organisms and high-yielding varieties, can increase yields and reduce production costs. However, this could also affect market prices, depending on how quickly new technologies are adopted by farmers and consumers.

The fourth factor is the exchange rate. As a wheat exporter, Ukraine is sensitive to exchange rate fluctuations. A decrease in the value of the national currency can make Ukrainian wheat more competitive on the world market, which can lead to an increase in exports and an increase in prices in the domestic market.

The last but no less important factor is state support. The government can influence wheat prices by regulating export and import duties, providing subsidies to farmers, or other measures to support the agricultural sector. Such measures can stabilize the market and reduce price fluctuations.