Fastmarkets, the industry-leading cross-commodity price reporting agency (PRA), announces the launch of the agriculture market’s first North African wheat price to provide higher levels of transparency in a market facing food security concerns.
Fastmarkets is launching the Wheat CFR North African Milling price, measured in US dollars per metric tonne, in response to the need for a price benchmark for the region. The Wheat CFR North African Milling $/tonne price is an important addition to a market that is structurally changing due to supply shortages driven by Russia’s invasion of Ukraine and severe unseasonal weather, compounded by post-pandemic logistical challenges.
Tim Worledge, agriculture pricing director, said: “Recent events in the Black Sea have resulted in a fundamental shift in trade flows, resulting in the need for new prices and pricing mechanisms.”
The new assessment, which is intended to capture the value of wheat delivered on a CFR basis into the world’s biggest importing region, reflects the changing pattern of global trade flows. Through this new benchmark, Fastmarkets reduces the reliance on pricing at origin – which can be subject to a range of seasonal, climatic, geopolitical and other factors – and allows the focus to shift to the key point of delivery, reflecting more stable and predictable demand.
“Russia’s invasion of Ukraine has combined with unusual weather patterns in Europe and South America to create significant food security risk in North Africa,” said Raju Daswani, CEO of Fastmarkets. “Transparent, market-reflective prices – such as the Wheat CFR North African Milling price – are critical to facilitating wheat trade in the region.”
To find out how they assess commodity prices, visit fastmarkets.com/methodology.
