UN sees global wheat output falling for first time in 5 years.

By Bloomberg

Global wheat output is expected to drop slightly next season from a record high as the war in Ukraine and dry weather in Russia takes a toll on crops, the United Nations said.

Production should fall roughly 1% to 784 million tons in the 2023-24 season, the UN’s Food and Agriculture Organization said Friday. That would be the first decline in five years and highlights the risk that global grain supplies still face from Moscow’s invasion of Ukraine.

Crop prices were volatile last year as the invasion disrupted trade, but wheat and corn have now returned to pre-war levels. 

The FAO estimates that Ukraine’s winter-wheat area has fallen 40% in the wake of the war due to financial constraints, damage to infrastructure and problems accessing fields. In Russia, dry weather in some regions and lower prices have curbed sowing and will result in the harvest falling from a record, it said.

This article has been republished from The Mint.