Restricting the supply of wheat from Russia led to a rise in stock prices

against the background of the introduction of 15 February 2021г. quotas and duties on export of grain in Russia began with the shipment of wheat under current contracts. Parties are held for verification for up to 10 days, which threatens traders with losses for breach of contract and undermined Russia's reputation as a global grain supplier.

news about the restriction of supply from Russia, wheat prices on the stock exchanges of the USA and Europe reacted friendly growth. Traders will soon benefit from the introduction of customs duties, as concerns about the revitalization of the Russian exporters of wheat shipments in the next two months are not justified because of the actions of customs officers of the Russian Federation.

amid improving export prospects, the market for U.S. wheat rose yesterday, despite the decline in export sales of wheat for the week by 12% to 540 thousand tonnes, which is 37.8% less than the corresponding period last year. Actual exports of wheat for the week decreased by 56,8% to 238,4 thousand tons, and the whole season amounted to 13.1 million tons projected to reach 26.8 million tonnes to the end of the season needed weekly to deliver about 500 thousand tons of wheat.

Powerful support to the market had a fall in the dollar to 2-year low.

the March wheat futures in the U.S.:

the

3.12 $/t to 209,44 $/t for solid winter HRW wheat in Kansas city

by 3.03 $/t to 208,33 $/t on a firm spring HRS wheat in Minneapolis.

• 3.77 $/t to 223,67 $/t for SRW soft winter-wheat in Chicago

the Growth of prices for French wheat has limited the sharp appreciation of the Euro against the dollar.

the

• the March futures for milling wheat on MATIF rose by 1.5 €/t to 207,25 €/t or 254,01 $/t

In Russia, the procurement price of wheat for the week fell by 8-10% because of the uncertainty of exports, which reduces sales from the manufacturers and will lead to reduced exports in the near future. Significant reserves will go on the market in the spring, when the received quota and the farmers will increase sales.

In Ukraine, by contrast, wheat prices at ports rose amid increasing demand from the traders, however, merchant activity is observed.

Recall that in India, which spring again will collect a record harvest of wheat from last season has accumulated huge reserves. According to official data, as of January 1, 2021г. stocks of food grains in the country is 2.7 times higher than the desired level and achieved 51,29 million tons while necessary for the country's 21.4 million tons.

the food Corporation of India in 2020/21 MG has already acquired 76.2 million tons of rice, which is 114% higher than the 2013/14 marketing year and 34.1 million tons of wheat, which is 36% higher than the previous season.