Extreme cold in Ukraine and Russia led to a rise in wheat prices

During 16-19 January, Ukraine and Russia was dominated by cold weather with frosts -16...-24 degrees, intensifying concerns about the fate of winter crops, especially given the poor state of some of them before winter.

Snow cover is quite heterogeneous and has a thickness of 3-40 cm, but should protect the plants from frost. In Ukraine the condition of winter wheat is better than in the regions of southern Russia, where mostly wheat is exported.

According to the National Academy of agrarian Sciences of Ukraine, as of 13 January, the level of sugars in the tillering nodes of winter crops was sufficient to the plants without significant damage to withstand 20 degrees of frost even with a slight layer of snow.

the rainfall in Russia was more, so even small crops are protected from frost and moisture supply of the soil above.

While in the United States celebrated the Day of memory of Martin Luther king, the Paris wheat exchange rose sharply on higher export prices for Russian wheat and intentions of the Russian government to introduce duties on grain exports.

the March futures for milling wheat on MATIF rose by 4.25 €/t to 235,75 €/t or 285,08 $/t and in total during 5 days, they rose by 20.36 €/t

the prices of European wheat supports Algeria announced a tender where the Agency OAS plans to acquire at least 50 thousand tons of milling wheat optional origin supply 15-28 Feb. At the previous tender on 31 December OAS acquired 300 thousand tons of milling wheat of arbitrary origin, at the price 291-292 $/t C&F.