Global market price of wheat likely to soften due to suspension of imports in Turkey

08-Jun-2024 01:16 PM

Chicago. To protect the interests of domestic producers, the Turkish government has decided to suspend wheat imports at least till October 15, 2024, the period of which can be extended further.

Since Turkey is included in the list of top wheat importing countries in the world, if imports are stopped there, exporters, especially from Russia, may face great difficulty. It is worth noting that 60 to 75 percent of wheat imports in Turkey are from Russia alone.

A strong inflow of new wheat consignments is going to start in Russia from next month and at such a time, the closure of exports in an important market like Turkey has become a matter of serious concern for its exporters.

After the announcement of suspension of imports in Turkey, the futures price of wheat fell by more than 3 percent in the Euronext exchange in Paris. The futures price of wheat is also likely to be affected in the Chicago exchange.

According to a leading analyst, if Russian wheat is not sold in Turkey, then efforts can be made to sell it at a cheaper price in other regions, which is expected to benefit the countries of the Middle East, Africa and Asia.

The ban on the export of wheat flour from Turkey has been imposed since September 2018, which has now been lifted.

The International Grains Council (IGC) has estimated a total of 12 million tonnes of grain imports with 8.5 million tonnes of wheat in Turkey during the 2024-25 marketing season.