Sudan’s Wheat Import Requirements to Rise to 3.5 Mln Tons in 2023

A container with wheat is seen aboard Marshall Islands flagged general cargo ship Negmar Cicek loaded with wheat for Yemen, amid Russia's attack on Ukraine, in a sea port of the Chornomorsk town, Odesa region, Ukraine March 24, 2023. (Reuters)
A container with wheat is seen aboard Marshall Islands flagged general cargo ship Negmar Cicek loaded with wheat for Yemen, amid Russia's attack on Ukraine, in a sea port of the Chornomorsk town, Odesa region, Ukraine March 24, 2023. (Reuters)
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Sudan’s Wheat Import Requirements to Rise to 3.5 Mln Tons in 2023

A container with wheat is seen aboard Marshall Islands flagged general cargo ship Negmar Cicek loaded with wheat for Yemen, amid Russia's attack on Ukraine, in a sea port of the Chornomorsk town, Odesa region, Ukraine March 24, 2023. (Reuters)
A container with wheat is seen aboard Marshall Islands flagged general cargo ship Negmar Cicek loaded with wheat for Yemen, amid Russia's attack on Ukraine, in a sea port of the Chornomorsk town, Odesa region, Ukraine March 24, 2023. (Reuters)

Sudan will need to import 3.5 million tons of wheat this year because of a 30% drop in the projected local harvest after farmers switched to planting different crops, the UN Food and Agriculture Organization (FAO) said on Wednesday.

Some farmers told Reuters the government had failed to buy their wheat on promised terms last year, leaving them reluctant or without the money to plant a new crop.

This year production of sorghum, a staple in Sudan, and of millet, is expected to recover, helped by favorable rains, the FAO said. Projected wheat imports will therefore account for nearly all Sudan's expected cereal import requirements of 3.6 million tons, it added.

"This will have a major impact on the food security of millions of Sudanese people, as international prices of wheat continue to increase and the country's national currency weakens," the agency said in a statement.

In 2022, Sudan imported 2.7 million tons of wheat and flour at a cost of $1.06 billion, with Russia, Australia, and Romania being the top import origins, according to central bank data.

Humanitarian agencies have warned of rising levels of hunger in Sudan, where more than one third of the population faced acute food insecurity last year.

"Communities are facing differing scales of vulnerabilities driven by soaring prices of staple crops, and the combined effects of economic downturn, high inflation, climate-induced hazards and conflict," the FAO statement quoted its Sudan representative Adam Yao as saying.



Gold Gains on Soft Yields; Focus on Trump-Zelenskiy Meeting

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
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Gold Gains on Soft Yields; Focus on Trump-Zelenskiy Meeting

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo

Gold prices eked out gains on Monday, helped by lower US Treasury yields, while market players awaited US President Donald Trump's meeting with Ukrainian President Volodymyr Zelenskiy and European leaders later in the day.

Spot gold gained 0.4% to $3,348.28 per ounce, as of 0840 GMT on Monday, after hitting its lowest level since August 1. US gold futures for December delivery rose 0.3% to $3,393.40.

"The firm tone to gold prices has returned today with the market nudging the $3,350 level (as) the combination of soft yields and a weaker dollar would for sure create a tailwind for gold," said independent analyst Ross Norman.

Benchmark 10-year US Treasury yields fell from more than two-week highs.

On the geopolitical front, European leaders are set to join Zelenskiy for talks with Trump later on Monday to discuss how to approach a possible deal to end the war between Russia and Ukraine.

Russia would relinquish tiny pockets of occupied Ukraine and Kyiv would cede swathes of its eastern land which Moscow has been unable to capture, under peace proposals discussed by Russia's Vladimir Putin and Trump at their Alaska summit on Friday, sources briefed on Moscow's thinking said.

"Front-running the geopolitical news would be unwise just now given that almost any outcome is conceivable. If there was a sense that tensions over Ukraine were easing, then we might expect some modest softness in gold prices," Norman added.

Investors are also looking ahead to the Federal Reserve's annual symposium in Jackson Hole, Wyoming for more cues on Fed's interest rate path.

Economists polled by Reuters largely expect the Fed to announce a rate cut in September, its first this year, with a possible second cut by year-end.

Non-yielding bullion, considered a safe-haven asset during periods of geopolitical and economic uncertainty, tends to perform well in a low-interest-rate environment.

Elsewhere, spot silver was up 0.2% at $38.08 per ounce, platinum was steady at $1,335.06 and palladium was up 0.6% at $1,118.92.