Wheat prices continue to fall, despite the damage to the port of Izmail

On the night of August 2, the Russian Federation attacked the port of Izmail with drones, which led to destruction, fires, the reduction of 40 thousand tons of grain and the shutdown of one of the two largest Danube ports, which were the only working route for the export of grain from Ukraine.

Against the background of the completion of the grain agreement, the suspension of exports through the Black Sea ports and the blocking of Ukrainian imports by the neighboring EU countries, only one export route remained available for Ukraine - through the Danube ports, but even the Russian Federation is trying to block it through constant shelling.

However, the world wheat market yesterday did not react to the shelling of Ishmael, and prices continued to fall under the pressure of acceleration of harvesting and the results of the tender in Egypt.

Yesterday, September futures fell:

• by 2% to $235.2/t - for soft winter SRW wheat in Chicago,
• by 2.2% to $289.2/t - for hard winter HRW wheat in Kansas City,
• by 0.7% to $312/t - for hard spring HRS-wheat in Minneapolis,
• by 1% to €233.75/t or $255.6/t - for wheat on the Paris Euronext (-10.9%).

At the same time, Black Sea wheat rose by 0.4% to $240.75/t in Chicago.

American wheat continues to fall in price against the background of improved weather in spring wheat growing regions, and Russian wheat is becoming more expensive based on the results of the Egyptian tender.

The state-owned Egyptian operator GASC purchased 360,000 tons of wheat for September 1-10 delivery at an August 2 tender at an average price of $263.68/t C&F, which is 8% higher than the June 6 tender purchase price. In particular, 300,000 tons of Russian wheat at a price of $264/t C&F ($250/t FOB + freight $14/t) and 60,000 tons of Romanian wheat at a price of $262.05/t C&F ($249/t FOB + freight 13 .05 $/t).

Tunisia's state agency ODC also held a tender this week, where it purchased 125,000 tons of wheat for September 1-30 delivery at a price of $271.68-277.77/t C&F.