Delayed exports from Russia supports the price of wheat

Introduced by the Russian government to stabilize food prices, quotas on grain exports and the duty on wheat exports for the period from 15 February to 30 June, in December resulted in delays with customs clearance of consignments of wheat.

In response to this, export prices for Russian wheat increased by 5-6 $/t up to 257-260 $/t FOB Black sea ports, although purchase prices at ports are falling, as traders are not sure that will be able to ship wheat to the imposition of duties and quotas. Against this background, experts IKAR has lowered the forecast of wheat exports from Russia from 40 to 37.5 million tons.

the price of wheat, including the Ukrainian international stock markets go up as part of unshipped from Russia wheat traders will be forced to buy in other countries, primarily in Ukraine.

the Purchase price for wheat in Ukraine in the ports has increased by 3-5 $/t to 245-248 $/t or 8200-8250 UAH/MT amid limited supply from producers and rising export prices to the level of 255-260 $/t FOB.

Wheat exchange in the US yesterday was growing on the back of improved export prospects and after the neighboring soybean market, supported by news about the drought in Argentina and another decline in the wheat crop forecast.

Experts Grain exchange Rosario has lowered the forecast of wheat production in Argentina in 2020/21 MG 0.2 million tons to 16.5 million tons (which exceeds the average 5-year rate is 15.8 million tons and an export forecast up 0.4 million tons to 9.6 million tons

Prices supported the increase in exports of US wheat for the week by 49% to 391 thousand tons, although the beginning of the season exports amounted to 14,127 million tons, which is 0.3% below last year's pace, and continues uplas. To leave on a forecast of 26.8 million tonnes of the country until July 1, weekly export nearly 530 thousand tonnes of wheat.

the March wheat futures in the U.S.:

the

1.93 $/t to 211,09 $/t for solid winter HRW wheat in Kansas city

0.64 $/t to 209,53 $/t on a firm spring HRS wheat in Minneapolis.

• at 1.10 $/t to 224,59 $/t for SRW soft winter-wheat in Chicago

After two days of growth at the end of last week, the Paris stock exchange yesterday turned down under the pressure of sluggish sales in the run-up to Christmas, and strengthening logistical constraints between the EU and the UK as a result of the emergence of a new strain coronavirus.

the

• the March futures for milling wheat on MATIF fell by 0.5 €/t to 208 €/t or 255,69 $/t

the European Union per week exported 476 thousand tonnes of wheat and just season 12,077 million tonnes, which is 17% below the corresponding period last year.

Christams reduced trading activity in the near future will limit the growth of prices, especially against the background of increase of wheat exports from Australia and Argentina.