Ukraine, the UN and Turkey announced the extension of the grain agreement, although there is no agreement from the Russian Federation

UN Secretary General Antonio Guterres, and later the presidents of Ukraine and Turkey, announced that the grain agreement, which expires on November 19, has been extended for another 120 days.

There was no official confirmation from the Russian side, but the press secretary of the President of the Russian Federation, Peskov, said that the UN had guaranteed Russia the completion of efforts to ensure the export of Russian food and fertilizers. And the USA, EU and Great Britain in a joint statement agreed to make an exception to the regime of sanctions for Russian exporters of fertilizers and food.

Wheat quotations fell again on this news:

• by 1.3% or $3.95/t to $296.4/t - December futures for soft winter SRW wheat in Chicago (-6.5% for the month),
• by 1.9% or $6.43/t to $344.7/t - December HRW hard winter wheat futures in Kansas City (-1.3%).
• by 1.3% or $4.32/t to $350.4/t - December futures for HRS durum wheat in Minneapolis (0%).
• by 0.1% or $0.5/t to $317.75/t - December Black Sea wheat futures in Chicago (-3.5%).

But December wheat futures on the Paris Euronext rose by 1.5% or 4.75 €/t to 324.5 €/t or $336.8/t (-6.8% for the month).

IGC experts reduced the forecast of world wheat production from 792 to 791 million tons, in particular for Argentina by 4.5 million tons to 13 million tons, although they raised the estimate for Australia to 34.7 million tons. The stock forecast was reduced by 4 million tons after the balance adjustment for 2021/22 MR.

In Ukraine, on the news of the extension of the agreement, the purchase of wheat in the Black Sea ports resumed, but the prices remain at a low level of UAH 7,800-8,200/t. As of November 16, Ukraine exported 6 million tons of wheat (13.5 million tons on this date last year) and if the grain corridor continues for 4 months, it will be able to ship another 6 million tons.

The Egyptian GASC purchased another 300,000 tons of food wheat, presumably Russian, for delivery in December-January at a price of $362/ton CFR. A week ago, he contracted 280,000 tons of Russian wheat for shipment until December at a price of $362.5/t CFR. So far, through private negotiations, GASC has purchased 1.7 million tons of wheat, mostly of Russian production.

Pakistan is conducting a tender for the purchase of 500,000 tons of wheat, which will support the market.

In south-east Australia, rains worsen the condition of wheat crops, the quality of which may deteriorate significantly, while crops in Argentina are suffering from drought. In Ukraine, 70% of last year's area was sown with winter wheat, but due to the delay in sowing, the plants enter the winter very weak.