The price of wheat awaiting the new rules of export from Russia

2019-01-21 12:15:26
Machine translation
The price of wheat awaiting the new rules of export from Russia

the Rosselkhoznadzor is working to strengthen control over the export of grain, in particular, is going to change the form of permit for export.

 

Russia has become a major exporter of wheat, and any company can ship to world markets for grain, which the government is not always able to control. The new proposals will ensure control of shipments in full.

 

first change the form of permit for export. For some countries, prompted the licensing of the export activities, in particular to strengthen the impact of public companies such as United grain company and Prodintorg.

 

recorded in the South of Russia of violations in the export of grain, in October, the Department instructed to strengthen the monitoring of the phytosanitary and quarantine as platforms for the shipment of grain in Krasnodar region and Rostov region.

 

Argentina collected 19 million tonnes of wheat, which is inferior to a projected 19.5 million tons through long-term rainfall, which reduced the yield in comparison with the previous season by 3.1% to 3.12 t/ha.

 

High competitiveness of Argentine wheat contributes to the active export. Already contracted 47% of the wheat crop 2018/19 Mr. Almost 40% of the total exports of Argentine wheat will be shipped to Brazil, 10-12% - to Algeria, are increasing shipments to Asia and Africa, increasing competition from black sea grain.

 

According to Reuters, as of 9 Jan Argentine wheat FOB with delivery in February from the port of Rosario to the Egyptian port of Doom Yat offered for 236 $/t plus freight rate is 26.37 $/t

 

At the last tender, Egypt bought only Russian wheat at 248-252 $/t FOB plus freight rate 15-16 $/t in February.

 

Traders expect the USDA report with an assessment of the acreage of wheat in the U.S. in 2019, the publication of which was delayed due to the government shutdown. Reuters survey showed that the market participants estimate the acreage in the U.S. at 32.3 million acres, up 1 million acres higher than last year's estimate of 31.3 million acres, although the actual acreage in 2018 amounted to 32.5 million acres.

 

it is Worth noting that in the first half of the decade, the sown area accounted for 40-42 million acres, but an increase in profitability of soybeans and corn led to a reduction in wheat areas.

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