Sellers cut prices for wheat to boost exports
the Agency Strategie Grains reduced the forecast of wheat exports from the EU to the season 2017/18 600 thousand tons to 22.3 million tons This re-evaluation is due to the slowing of grain exports from Germany and Poland.
As of December 12, the weekly soft wheat exports of the EU amounted to 156 thousand tons, which is 3.2% lower than in the previous week. Since the beginning of the season, with the EU were exported 9,014 million tonnes of soft wheat, which is 25% less than the same date last year.
Farmers are holding sales as current prices are below production costs.
USDA reports that in the last week, wheat exports from the United States in comparison with the previous week increased by 83,2% to 588,8 million tonnes, which is 10.8% more than last year. Lower prices for U.S. corn have increased the interest of buyers and has helped to promote exports, which is significantly lower than last year.
Record harvest of Russian wheat and the good condition of winter crops forces farmers to sell grain at current prices, not to be left with large reserves, like last year.
In November, Russia has set a new export record, implemented on the world markets of 5.53 million tonnes of grain. Overall this season, Russia exported of 22.76 million tonnes of grain, of which of 17.79 million tonnes of wheat, which is by 28.4% more than last season.
the Fall of the hryvnia leaves purchasing domestic prices at a high level, which activates the sales of wheat and maintains the pace of exports last year.
Since the beginning of the 2017/18 MG as of 12 December, the Ukrainian grain exports have reached 18.6 million tonnes, which is 7% behind the previous year figure. The export of wheat has decreased only by 0.7% and amounted to 10.7 million tons.