Assessing tight global wheat stocks and their role in price volatility

The Russia-Ukraine war has caused significant price volatility in agricultural markets over the past year — for wheat, in particular, price levels and price volatility reached the highest levels since the 2007/08 marketing year. Both have fallen back to pre-war levels over the past six months, but v...

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Main Author: Glauber, Joseph W.
Format: Book Chapter
Language:Inglés
Published: International Food Policy Research Institute 2023
Subjects:
Online Access:https://hdl.handle.net/10568/140063
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author Glauber, Joseph W.
author_browse Glauber, Joseph W.
author_facet Glauber, Joseph W.
author_sort Glauber, Joseph W.
collection Repository of Agricultural Research Outputs (CGSpace)
description The Russia-Ukraine war has caused significant price volatility in agricultural markets over the past year — for wheat, in particular, price levels and price volatility reached the highest levels since the 2007/08 marketing year. Both have fallen back to pre-war levels over the past six months, but volatility remains high relative to historical levels (Figure 1), indicating that significant market uncertainty remains, creating ongoing vulnerability for global food security. Before 2022, volatility (measured by the implied volatility in the wheat futures market) spiked and remained high three times since 2006 — in 2007/08 and then again in 2010/11 and 2012/13 (as indicated in the gray bands in the figure). Markets then remained relatively quiet until the recent spike following Russia’s invasion of Ukraine in February 2022. High volatility persists due to market uncertainty over the war and the relative tightness in stock levels, which provide little cushion against unforeseen production shortfalls.
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spelling CGSpace1400632025-11-06T04:11:10Z Assessing tight global wheat stocks and their role in price volatility Glauber, Joseph W. production shock policies war coronavirus covid-19 supply stocks agriculture markets trade coronavirinae russia food security ukraine conflicts coronavirus disease wheat prices climate change The Russia-Ukraine war has caused significant price volatility in agricultural markets over the past year — for wheat, in particular, price levels and price volatility reached the highest levels since the 2007/08 marketing year. Both have fallen back to pre-war levels over the past six months, but volatility remains high relative to historical levels (Figure 1), indicating that significant market uncertainty remains, creating ongoing vulnerability for global food security. Before 2022, volatility (measured by the implied volatility in the wheat futures market) spiked and remained high three times since 2006 — in 2007/08 and then again in 2010/11 and 2012/13 (as indicated in the gray bands in the figure). Markets then remained relatively quiet until the recent spike following Russia’s invasion of Ukraine in February 2022. High volatility persists due to market uncertainty over the war and the relative tightness in stock levels, which provide little cushion against unforeseen production shortfalls. 2023-07-11 2024-03-14T12:08:52Z 2024-03-14T12:08:52Z Book Chapter https://hdl.handle.net/10568/140063 en https://doi.org/10.2499/9780896294394 https://www.ifpri.org/blog/assessing-tight-global-wheat-stocks-and-their-role-price-volatility Open Access application/pdf International Food Policy Research Institute Glauber, Joseph W. 2023. Assessing tight global wheat stocks and their role in price volatility. In The Russia-Ukraine Conflict and Global Food Security, eds. Joseph Glauber and David Laborde Debucquet. Section One: A Conflict with Global Consequences, Chapter 10, Pp. 52-56. https://doi.org/10.2499/9780896294394_10.
spellingShingle production
shock
policies
war
coronavirus
covid-19
supply
stocks
agriculture
markets
trade
coronavirinae
russia
food security
ukraine
conflicts
coronavirus disease
wheat
prices
climate change
Glauber, Joseph W.
Assessing tight global wheat stocks and their role in price volatility
title Assessing tight global wheat stocks and their role in price volatility
title_full Assessing tight global wheat stocks and their role in price volatility
title_fullStr Assessing tight global wheat stocks and their role in price volatility
title_full_unstemmed Assessing tight global wheat stocks and their role in price volatility
title_short Assessing tight global wheat stocks and their role in price volatility
title_sort assessing tight global wheat stocks and their role in price volatility
topic production
shock
policies
war
coronavirus
covid-19
supply
stocks
agriculture
markets
trade
coronavirinae
russia
food security
ukraine
conflicts
coronavirus disease
wheat
prices
climate change
url https://hdl.handle.net/10568/140063
work_keys_str_mv AT glauberjosephw assessingtightglobalwheatstocksandtheirroleinpricevolatility