Wheat prices fell in anticipation of the departure of grain ships from Ukrainian ports

Yesterday, traders took profits on data about a better-than-expected spring wheat yield in the US and in anticipation of the first grain ships leaving Ukrainian ports, which led to a 1.6-2% drop in quotations.

The UN believes that within a few days Ukraine will be able to resume exports from sea ports. However, most of the crews of the 80 ships blocked in the ports have evacuated, so it is unlikely that anyone will agree to replace them until the first ships have safely passed through the grain corridors everywhere mines and shelling.

Day one Crop Tour results for spring wheat in North Dakota showed yields of 48.9 bushels/acre, above the state average thanks to good soil moisture after last year's drought.

The State Agency of Pakistan TSR purchased 300,000 tons of wheat for delivery on August 1-25 at the price of $404.86/t C&F at an international tender.

The Ministry of Trade of Iraq plans to purchase 1.5 million tons of wheat in early 2023 (of which 400,000 tons in the first stage), as it has the necessary stocks until the end of 2022.

According to the European Commission, during July 1-24, the EU exported 1.4 million tons of soft wheat, which is 40% higher than last year's figure.

Yesterday, wheat quotations on world exchanges fell:

• by 1.7% or $4.96/t to $290.4/t - September futures for soft winter SRW wheat in Chicago,
• by 1.8% or $5.6/t to $316.6/t - September futures for hard winter HRW wheat in Kansas City,
• by 2.1% or $6.89/t to $334.4/t - September futures for HRS durum wheat in Minneapolis,
• by 1.6% or 4.5 €/t to 340 €/t or $347.1/t - September wheat futures on Paris Euronext.

August futures for Black Sea wheat in Chicago remained at $360.5/t.

Russia's reluctance to implement the agreement on unblocking the ports of Ukraine was indirectly confirmed yesterday by the deputy minister of foreign affairs, who announced the possible disruption of agreements between Turkey, the UN, Ukraine and the Russian Federation due to the complication of the situation with the export of Russian agricultural products against the background of the work of the grain corridors.