Purchase prices for wheat in Ukrainian ports accelerated the decline

This week, food wheat prices in Ukraine accelerated their decline amid lower prices for Russian wheat and in anticipation of the December USDA report, which may change the price trend.

The increase in prices for food wheat to a record $330-335/ton contributed to the activation of sales by producers, so traders closed their export contracts for the nearest delivery and lowered prices to 3 315-320/ton or UAH 9750-10000/ton.

December Black Sea wheat futures at the Chicago SWOT for four consecutive sessions remain near the level of 3 341.75/ton, but in the physical market prices for Russian wheat with protein 12.5%, according to Icarus and SovEcon agencies, for the first time in 6 weeks fell by 3 3-5/ton to F 337-340/ton FOB.

Analysts believe that even if the Russian authorities limit the volume of wheat exports in the second half of the season at the level of 9 million tons, it will correspond to the export figures of similar periods of the last two years.

The State Food Agency of Saudi Arabia SAGO purchased at a tender 689 thousand tons of food wheat for delivery in July at a price of C 365/ton C&F, which upset traders who expected a higher price level.

The French Ministry of Agriculture predicts that 4.92 million hectares of winter wheat will be sown in the country in 2022/23 mg, compared with 4.96 million hectares in the 2021/22 season.

• December European wheat futures on Paris ' Euronext have fallen 3.6% to €280.25/ton or € 316.4/ton since the beginning of December, which has increased pressure on Black Sea wheat prices.

In the United States, wheat prices are rising amid warm weather without precipitation in winter wheat growing regions, which is exacerbating the drought. Wheat exports from the United States for the week of November 26-December 2 decreased by 59% to 246 thousand tons, and in general in the season reached 11.148 million tons, which is 20.9% lower than last year's pace.

December futures on US stock exchanges rose in two sessions:

• by 1 1.8 / ton to Чикаго 293.7/ton for soft winter SRW wheat in Chicago,
• by 2 2 / ton to H 304/ton for hard winter HRW wheat in Kansas City,
• by 3 3.4/ton to.384.2 / ton for hard spring HRS wheat in Minneapolis.

Traders expect that the December USDA report will increase estimates of global production and final stocks, which will increase pressure on quotes.