Record wheat exports from Russia increases pressure on prices

2021-02-02 12:03:05
Machine translation
Record wheat exports from Russia increases pressure on prices

an Increase in supply of Russian wheat, which is trying to export before the introduction of fees increases the pressure on global stock prices. To activate exports from Russia reduces the volume of shipments from the United States and the EU. Powerful snowfall in the regions of cultivation of winter wheat in Ukraine and Russia reduce prices, already too long kept at maximum levels.

 

French Market of wheat falls 3 days in a row after Chicago and amid a record pace of exports of Russian wheat. Traders await the outcome of the Egyptian tender that will demonstrate the competitiveness of European wheat, the price of which is lower than the Russian, and make 285-290 $/t FOB.

 

wheat Exports from the EU for the week amounted to 290 thousand tons of wheat (mainly from Bulgaria, Poland and Latvia), and just season amounted to 15 million tonnes, which is 17 per cent behind last year's pace.

 

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  • the March futures for milling wheat on MATIF fell by 3.5 €/t to a weekly low of 223.5 €/t or 270,10 $/t

 

the Market for U.S. wheat yesterday could rise following the neighbouring markets of soybeans and corn and on the back of high export demand for agricultural products from the United States, primarily from China. However, speculators began to take profits and deployed the price down, and the strengthening of the dollar has increased pressure on the quotes.

 

wheat Exports from the U.S. last week fell by 31% to 396,8 thousand t (under the expert expectations of 350-550 thousand tons), and just season reached 16.5 million tons, which is 0,62% below last year's pace.

 

the March wheat futures in the U.S. fell:

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by 4.68 $/t to 229,74 $/t for solid winter HRW wheat in Kansas city

3.86 $/t to 228,91 $/t on a firm spring HRS wheat in Minneapolis.

  • by 4.41 $/t to 239,20 $/t for SRW soft winter-wheat in Chicago

 

the March futures for black sea wheat on the Chicago exchange fell yesterday by 0.7% to 285 $/ton that lowers the prices of Ukrainian and Russian wheat on the physical market.

 

In Russia are considering the introduction of flexible export duties on wheat that will be applied if prices rise above $200/t. This reinforces the uncertainty in the market and the sellers ' desire to quickly sell the product. The increase in demand for sending from the ports of Azov led to a rise in freight rates to 2-year high. For sending wheat from Russia to the sea of Marmara in January, customers paid earlier in the week 34-35 $/t, and in the end, 39-40 $/ton that lowers the purchase price of grain in the black sea region.

 

Ukraine exporters of offer for wheat 275-278 $/t or 9250-9350 UAH/t at the port, however, they are actively competing refiners, with delivery to the plant are willing to pay 9000-9200 UAH/t. However, the manufacturers do not hurry with sales, and actively implement the corn, the price of which is now recovered after a fall.

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