Hot and dry summer resulted in depletion of wheat reserves in many producing countries to the lowest level since 2007-2008, Reuters reports.

Although volume of inventories will reach record 273 million tons in the beginning of 2018-2019 season, the problem is that half of this inventory is in China, which unlikely will release any wheat to the market.

According to experts estimate, by the end of season eight major exporters will have 20% of world reserves covering 26 days.

However, analytics assure that at the moment there are no signs of repeating 2007-2008 crisis, when many countries had to limit or ban wheat export, if no other factors are added.

Recent price increase to three-year high level $5,93 per bushel fades compared with price $13,34 in February 2008.

Crops of such large exporters as Argentina, Australia, Canada, EU, Kazakhstan and Russia suffered this year. Germany plans the lowest harvest in 24 years.

US is in beneficial position, since it has quite large reserves. Moreover, farmers in the country are eagerly expecting demand rise among trade war with China, which is the largest importer of US soy and corn.

Black Sea countries and Europe will most likely lose market share.