South Africa: South African Wheat Prices Reach Record High Levels

  |   Attaché Report (GAIN)

South Africa’s local wheat price increased sharply to record high levels in April 2020. Wheat is the second most important grain commodity consumed in South Africa after corn. Hence, any sharp increase in wheat prices will have a detrimental effect on the South African consumers’ food expense. Since deregulation in 1997, South Africa’s wheat production declined over time while local demand for wheat rose, resulting in an increase in South Africa’s dependence on wheat imports and in the impact of the exchange rate. The South African Rand depreciated by 25 percent since January 2020 due to COVID-19 and Moody’s downgrade of South Africa’s credit rating to junk status, driving local wheat prices to record levels. Record high wheat prices have a negative inflationary impact on bread and wheat flour prices, and increase the South African consumers’ expenditure on basic food products.

South Africa: South African Wheat Prices Reach Record High Levels

Related Reports

Attaché Report (GAIN)

India: Coffee Annual

FAS Mumbai forecasts marketing year (MY) 2025/26 coffee production (Oct/Sep) at six million 60-kilogram bags. A dry spell during January and February, followed by strong winds and excessive pre-monsoon rains in March and May,
Attaché Report (GAIN)

Canada: Grain and Feed Annual

Production of wheat, corn, barley, and oats is forecast to increase two percent year-over-year to 62.7 million metric tons (MT) in MY 2025/26 and area planted to grains will increase 2.2 percent year-over-year to 27.5 million hectares, according to Statistics Canada’s planting intentions survey.
Attaché Report (GAIN)

Guatemala: Coffee Annual

Guatemala’s coffee production areas remain stable, with gradual increases in output as ongoing renovation efforts begin to show results.