Wheat quotations on world exchanges started the week with a fall

The wheat market is waiting for the Russian Federation's decision on the continuation of the grain corridor from Ukraine. Currently, more than 120 vessels are waiting in line for loading due to delays by representatives of the Russian Federation in terms of inspection of ships bound for the Black Sea ports of Ukraine.

Traders practically stopped the purchase of wheat in the ports against the background of uncertainty with the further work of the corridors and obstruction of the ships' calls to the port.

Wheat quotes fell yesterday on the news of the acceleration of winter sowing in the USA, Ukraine and the Russian Federation, as well as under the pressure of low demand prices from importers due to a significant supply of Russian wheat.

According to Crop Progress, 79% of the area is planted with winter wheat in the US, which corresponds to the 5-year average. In France, on October 17, 46% of the area was sown with wheat (36% on this date last year). In Ukraine and the Russian Federation, 75% and 80% of the planned areas have been sown with wheat, respectively, and the total sown areas will decrease compared to last year due to prolonged rainfall in September.

Exports of wheat from the USA for the week decreased by 46% to 125.6 thousand tons, and in general in the season reached 9.5 million tons, which corresponds to last year's pace.

Ukraine exported 1.45 million tons of wheat in October (2.6 million tons in October 2021), and a total of 4.6 million tons in the season, while last year on this date 11.5 million tons were shipped.

From October 1 to 23, the Russian Federation exported 4.13 million tons of wheat, which is 57% ahead of last year's pace, but the total export of the season at the end of October will be 15 million tons, which is 15% less than last year's figure.

In September, China imported 370 tons of wheat, which is 42% less than in September 2021. For 9 months of 2022, wheat imports amounted to 6.62 million tons.

Russian wheat continues to fall in price, and according to Rusagrotrans, prices fell by 4.6% for the week to $310/t FOB Novorossiysk, while European wheat is offered at $335-340/t FOB, and Ukrainian wheat at $240-250/t t FOB due to high shipping costs. During the week, French wheat fell by 4.8% to $337/t, and American wheat fell by 3.5% to $387/t.

The Turkish agency TMO purchased 470,000 tons of Russian food wheat at an international tender for delivery in November-December at a price of $326-354/t C&F. The market is waiting for the results of tenders in Saudi Arabia and Pakistan, which plan to purchase 500,000 tons of wheat this week.

In the October Stratégie Grains report, the forecast for wheat production in the EU in FY 2022/23 was increased by 1.6 million tons to 132.7 million tons compared to September estimates, while in FY 2021/22 it was 137.5 million tons.

Yesterday wheat quotes fell

• by 1.4% or $4.4/t to $308/t – December futures for soft winter SRW wheat in Chicago,
• by 1.1% or $3.77/t to $344.7/t - December HRW hard winter wheat futures in Kansas City,
• by 0.4% or $1.38/t to $351.9/t - December HRS durum wheat futures in Minneapolis,
• by 0.5% or $0.25/t to $325.5/t - November Black Sea wheat futures in Chicago,
• by 0.8% or €3/t to €339/t or $335/t - December wheat futures on Paris Euronext.

The Algerian state agency OAIS will today hold a tender for the purchase of 50,000 tons of flour wheat for delivery in November-December, the results of which will affect the prices of European wheat.