Wheat prices continue to soar

the Intention of the Russian authorities to leave the duty on wheat exports after June 30, 2021г. led to a new surge in world wheat prices on the stock exchanges.

the Ministry of agriculture of the Russian Federation in the letter of the Union of grain exporters, said it has no plans to cancel the export duty on wheat after 30 June. The government's decision first to introduce quotas for export, then to introduce a duty to promote and to preserve in the new season, already in the course of the month remain the main drivers of growth in prices for Russian wheat, which during this period grew from 250 $/t to 285-290 $/t FOB.

the intention of the Russian authorities to restrain the growth of domestic prices of wheat and bread has led to a surge in world prices that actually leveled the imposition of export duties. Therefore, the government of the country in December, those January began to restrain exports by bureaucratic methods.

most from export restrictions from Russia won the Ukrainian and European producers who can now sell wheat at 280-285 $/t FOB.

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• the March futures for milling wheat on MATIF rose yesterday by 3 €/t to 229,75 €/t or 279,08 $/t, and in General for the last 5 days have increased in price 15,25 €/t

the price of U.S. wheat after a minor adjustment has resumed growth following the markets for soybeans and corn. Export restrictions from Russia improves export prospects for U.S. wheat, however, the data on weekly export limit price increases.

Export sales of US wheat for the week decreased by 19.4% to 222 thousand tonnes, which is almost three times lower than the corresponding previous year. Actual exports of wheat for the week decreased by 14.3% to 358 thousand tonnes, but in the whole season made up 14.78 million tonnes, which is 7.5% higher than last year's pace.

the March wheat futures in the U.S.:

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at 3,95 $/t to 233,87 $/t for solid winter HRW wheat in Kansas city

4.32 $/t to 235,34 $/t on a firm spring HRS wheat in Minneapolis.

• 3.49 $/t to 246,18 $/t for SRW soft winter-wheat in Chicago

Complete wheat harvest and recovery of exports in Argentina to increase supply on the world market, but prices for Argentine wheat remain at 270-275 $/t FOB.

Despite political differences Australia continues to supply wheat to China, and in December was shipped back 600 thousand tons, which supports the price of Australian wheat at 285 $/t FOB.

High price of wheat reduces the activity of buyers, so it is not known whether the second half of the season, the sellers continue to raise prices, or buyers will stop their growth or even deployed down.