Wheat prices in the physical markets continue to fall, while the exchanges – was somewhat strengthened

After Friday's collapse on Monday was an adjustment of the exchange prices of wheat, however, on the physical markets they are down as buyers reduced the volume of purchases, and the increase in Russia from March 1 the duty on wheat exports increases it deals with supply in the near future.

According to the signed Prime Minister of the Russian Federation the decree, the export duty on wheat from 15 to 28 February will be 25 €/t, and from 1 March to 30 June 2021, it will rise to 50 €/t. the Export duty on barley and maize, from 15 February to 14 March will be equal to zero, and from March 15 to June 30 will rise to 25 €/t for maize and 10 €/t for barley.

This news will accelerate the fall in prices for Russian wheat, which after an unsuccessful tender in Turkey dropped to 290-295 $/t FOB. Against this background, the European wheat fell to 280-285 $/t FOB. Sellers are willing to lower prices to increase sales, but buyers are holding back purchases. So, Bangladesh is the third time cancels tender for purchase of wheat from-for too high prices.

the Experts of the Ministry of agriculture of Argentina has increased the forecast for wheat production by 0.2 million tonnes to 17.2 million tonnes, which is 2.55 million t lower than in the previous season.

Traders on the stock exchanges in Paris and Chicago decided that the market is sufficiently lowered, and moved to speculative purchases, especially against Algeria announced a tender. In 2020/21 MG, the EU exported 14.5 million tonnes, which is 16 per cent behind last year's pace.

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• the March futures for milling wheat on MATIF rose by 3.25 €/t to 226,5 €/t or 275,05 $/t

the March futures for the soft wheat in Chicago yesterday played the part of the previous fall on expectations boost exports after the introduction of Russia's restrictions.

wheat Exports from the U.S. last week rose by 85% to 523,9 million tonnes, although analysts estimated it at 200-400 thousand tons Total exports of the season have reached 16 million tons, which is 0.7% below last year's pace.

the March wheat futures in the U.S.:

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by 5.14 $/t to 230,47 $/t for solid winter HRW wheat in Kansas city

4.96 $/t to 230,01 $/t on a firm spring HRS wheat in Minneapolis.

• by 5.14 $/t to 238,28 $/t for SRW soft winter-wheat in Chicago

In Ukraine, purchasing prices for wheat fell yesterday in the port of 200-300 UAH/t to 270-273 $/t or 9100-9250 UAH/t on the background of falling world prices and prices of Russian wheat, which is the main factor supporting prices of domestic wheat.

Today, markets will eye the outcome of the tender in Algeria and to remain under the pressure of news from Russia about increase of taxes.