The increase in duties on Russian wheat has led to a new surge in prices

2021-01-18 12:09:29
Machine translation
The increase in duties on Russian wheat has led to a new surge in prices

the March wheat futures in Chicago rose to the highest since may 2014 level after the decision of the Ministry of agriculture of the Russian Federation about increase of export duties on wheat by half. However, the price growth was limited by the strengthening of the dollar, the fall in the neighboring markets of soybeans and corn, and fixation of profit by traders.

 

the March wheat futures in the U.S.:

the

to 2.39 $/t to 236,26 $/t for solid winter HRW wheat in Kansas city

1.01 $/t to 236,35 $/t on a firm spring HRS wheat in Minneapolis.

  • 2.02 $/t to 248,20 $/t for SRW soft winter-wheat in Chicago

 

the depreciation of the Euro against the dollar to 1,207 $/€ increases the competitiveness of European wheat.

 

the

  • against this background, the March futures for milling wheat on MATIF rose to 1.75 €/t to 231,5 €/t or 279,56 $/t

 

the March futures for black sea wheat on the CBOT exchange also rose 3.3% to $300/ton, and the July – 2.2% to 252 $/t. Due to the active export prices for Russian wheat rose to 295-300 $/MT FOB for deliveries in February and March, while demand reaches 285-290 $/t FOB. For the week, Russia exported 700 tons of wheat, and only in the season of 27.6 million tonnes, which is 23% higher than the corresponding figure last year.

 

the Increase in export duty for Russian wheat will not reduce the number of proposals, as it is already, even with the stock, included in the price grew up. Therefore, it remains only to be surprised by the violent reaction of the markets on the new decisions of the Russian authorities.

 

the price of wheat maintains the cold cyclone that brought heavy frosts in Ukraine and Russia. They can cause damage to winter crops, although the recent snow managed to cover most of them with a layer of snow.

 

the Increase in wheat prices continues to lower demand from importers, which will increase competition between the sellers in the second half of the season.

 

In Ukraine, the demand price of wheat rose in the ports to 270-275 $/t or 9100-9300 UAH/t, but the manufacturers still keep selling. Perhaps they aktiviziruyutsya this week. Since the beginning of the season Ukraine exported 12.7 million tonnes of wheat, which is 17 per cent behind last year's pace.

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