Wheat prices rose by 2-3.8% due to threats of termination of the agreement on "grain corridors"
The successful counteroffensive of the armed forces of Ukraine in the east and south increases the enemy's losses in equipment and manpower, which causes inadequate reactions from the Kremlin elite and directly from Putin himself, who declared at the Eastern Economic Forum that "Ukrainian grain goes to the EU, not to poor countries, therefore, due to such deception, the validity period of the agreement on "grain corridors", which ends in November, should not be extended."
After such a statement, wheat prices rose by 2-3.8%, and European wheat rose in price the most, the demand for which will increase sharply if exports from Ukraine stop.
The EU has so far exported 6.21 million tonnes of wheat, compared with 6.02 million tonnes in the same period last year, and the pace of shipments is slowing amid lower prices. The intentions of the Russian Federation to cancel export quotas due to the record wheat harvest lower the quotation of Black Sea wheat.
According to Canada's StatsCan, from March 31 to July 31, wheat stocks in the country fell to 3.671 million tons, while analysts estimated them at 3.9 million tons, and last year they were 5.953 million tons.
Yesterday, wheat quotations on world exchanges rose:
- by 3.3% or $10/t to $310.2/t - December futures for soft winter SRW wheat in Chicago,
- by 2.2% or $7.17/t to $331.2/t - December HRW hard winter wheat futures in Kansas City,
- by 1% or $3.77/t to $330.7/t - December futures for HRS durum wheat in Minneapolis.
- by 0.5% or $1.5/t to $313/t - October Black Sea wheat futures in Chicago,
- by 3.8% or €12/t to €326.25/t or $325.9/t - September wheat futures on Paris Euronext.
The lack of active purchases by the main importers is putting pressure on wheat prices, so rumors about a possible stoppage of exports from Ukraine may activate demand. However, the market is awaiting updated USDA reports on Monday that will provide more information on the price outlook for the coming months.
