Wheat futures rose in price on the news of the withdrawal of international traders Cargill and Viterra from the Russian Federation

Yesterday, wheat futures continued to increase in price against the background of news that the international grain traders Cargill and Viterra have stopped working in the Russian Federation from the new season due to pressure from the Russian authorities, who are tightening control over their own market. At the same time, the large Russian supplier of fertilizers "UralChem" announced its readiness to purchase the Russian assets of traders Cargill and Viterra.

We will remind you that many international companies, such as the American Bunge, left the Russian market immediately after the Russian military invasion of Ukraine in order to increase the pressure on the Russian authorities and not to pay taxes that finance the war.

Currently, Cargill occupies the sixth position among the largest exporters of Russian grain with a share of 4% in total exports, while the leader - the RIF company exports 18% of grain. In the current season, Cargill can export 2.2 million tons of grain from the Russian Federation.

The withdrawal of two international grain traders from the Russian market increases the uncertainty regarding future deliveries of agricultural products from the Black Sea region.

Over the last 4 sessions, wheat quotes have increased:

• by 6.37% to $259/t - May futures for soft winter SRW wheat in Chicago,
• by 6.1% to $320/t - May futures for HRW hard winter wheat in Kansas City,
• by 5.8% to $322.6/t - May futures for HRS durum wheat in Minneapolis,
• by 8.5% to €255.25/t or $288.6/t - May wheat futures on the Paris Euronext.

According to estimates by the Food Corporation of India, in 2023/24, despite difficult weather conditions, India will be able to harvest 112 million tons of wheat, of which 34.15 million tons will replenish state reserves.

The Turkish agency TMO purchased 395,000 tons of wheat at the tender (out of the 695,000 tons planned for purchase) with a protein content of 12.5% and delivery from May 18 to June 16 at a price of $281.9-297.9/t C&F, which is 14 $9-30.5/t lower than at the February 28 auction. It is worth noting that 100,000 tons of Ukrainian wheat was sold by the Nibulon company at a price of $293.99/ton C&F.