As the most widely used type of grain in the agri-food industry, the demand for wheat production and exports continues to grow. However, the price of wheat in the agricultural market has been fluctuating steadily. Sometimes the price goes up, sometimes it goes down. Several parameters are taken into consideration when rating the cost of wheat. Want to know a little more? We’ll tell you how to find out about wheat prices online. Then, we inform you about the factors and impacts of wheat price variation.
How can I find out about wheat prices in real time online?
To find out the wheat price online, you can search on the internet. Several sites of companies operating in the agricultural economy, agriculture, import-export, finance sector issue the price of wheat from day to day. So this is its real price at the moment. To access these sites, just type “wheat price” on the search bar of the internet. Press the ‘Enter’ key on your keyboard, and the internet offers several addresses to consult. For example, go to this site to find out the current price of wheat on the agricultural market. You can even search further by asking for the rate in euros, dollars, yen, pounds sterling, CFA francs, in short, in all currencies. You can also get price information for each type of wheat. In fact, there are two main varieties of this cereal on the agricultural market. These are soft wheat and durum wheat.
What determines the price of wheat?
First of all, the cost of this cereal increases with the cost of energy resources and vice versa. At the level of the production zone, the labour and transport costs are taken into account by the collecting company. In addition, the quantity and quality of production also have an impact on the price of wheat. These parameters are in continuity with the import-export chain of the product. If the exporting country’s production is of inferior quality compared to its competitors, it must lower the price to attract its importing customer. An example is the downgrading of milling wheat to feed wheat. Similarly, if the growing area is unable to meet the customer’s demand, the customer will use the average value to estimate the cost of the wheat. They must, in fact, import more to their other partner countries. However, sometimes the price in these countries is higher. However, climatological, cultural technical and meteorological factors influence the quality and quantity of production. Therefore, the supply/demand system also has an impact on wheat prices. If supply is more quantitative than demand, the importer must set a competitive price. Finally, the exchange rate between the importer and the exporter also determines the price of the wheat.
What are the socio-economic impacts of wheat price changes?
For producing countries, wheat exports provide a source of income for the state. Thus, the variation in the price of wheat affects the country’s overall economy. A decrease in price compared to the previous year then generates a shortfall in profit. The same is true if the quantity of production is reduced.
For the lack of quality of the production, there is a great risk that the importer will also reduce his demand. In this case, there is a surplus of stock at the local level. However, the local population will never be able to buy the product at the same price as foreigners, unless agri-food industries are established there.
Finally, fluctuating wheat prices also have consequences in terms of consumer purchasing power. A high wheat price can, for example, increase the price of bread, dough…