Wheat prices fell 1.5-2.8% as tensions between Russia and the West eased

On Tuesday, Russia announced the withdrawal of some troops from the Ukrainian border, which led to a sharp decline in prices for oil and other goods.

Against the background of a decrease in escalation and news about the free passage of merchant ships to the Black Sea ports of Ukraine for loading, wheat futures fell by 1.5-2.8%.

• March Black Sea wheat futures on the Chicago Stock Exchange fell вчора 4.75/ton to.313.75/ton yesterday, losing 2.2% in two days and Friday's speculative growth.

The excellent condition of winter wheat crops in Russia, especially in the southern and central regions, improves the prospects for the harvest. SovEcon experts raised the forecast of wheat production in Russia in 2022 by 3.6 million tons to 84.8 million tons (76.5 million tons in 2021/22 MG).

In Europe, the weather also contributes to the formation of a good harvest, but farmers can reduce the consumption of nitrogen fertilizers due to their too high price. If the price of gas in Europe is reduced to 8 800/m3, fertilizer prices will also decrease.

Experts of the Ministry of Agriculture of France lowered the forecast of winter soft wheat sowing areas to 4.75 million hectares, which is 4.3% lower than last year's figure. Now the state of crops in the country is satisfactory, temperatures are moderate, and the amount of precipitation is sufficient.

• March European wheat futures on Paris ' Euronext fell 7.25 €/ton to 266.25 €/ton or 3 302.7 / ton, completely losing the speculative growth of the previous two sessions.

On February 11, the Algerian state agency OAIS purchased 500-570 thousand tons of South American and Black Sea Food wheat at a tender for delivery in March at a price of 3 348-350/ton of C&F. French wheat was again not bought due to political disputes between the two countries.

In the US wheat prices also fell amid low export rates and reduced political tensions in Europe:

• by 2.5% or 7 7.07/ton to Чикаго 286.5/ton for soft winter SRW wheat in Chicago,
• by 2.9% or 8 8.27/ton to 2 296.2 / ton for hard winter HRW wheat in Kansas City,
• by 1.3% or 4 4.78/ton to.350.2/ton for hard spring hrs wheat in Minneapolis.

During February 4-10, wheat exports from the United States amounted to 435.2 thousand tons, and in general in the season – 14.48 million tons, which is 20% lower than last year's pace.

A vivid example of the usefulness of peaceful relations for common well-being was the permission of Pakistan to pass through its territory 50 thousand tons of wheat and medicines from India to Afghanistan. Due to the ongoing border conflict, Pakistan is banning the import of goods from India and is forced to buy expensive Australian wheat this year, while India is looking for buyers for surplus wheat so that the countries can trade profitably with each other.