Volga Baikal AGRO NEWS Update on the World Market of the Wheat !!!

Volga Baikal AGRO NEWS Update on the World Market of the Wheat !!!

At the end of last week, quotations fell to $410-415 per ton, but then strengthened again, including against the background of a lag in spring wheat sowing (18% of the area was not sown, while in previous years sowing was already coming to an end). At the same time, the average price for French wheat 11.5% fell by $24, to $419 per ton FOB, American – by $9, to $416 per ton FOB. Stock quotes on the Chicago Stock Exchange last week fell to a monthly low, but the current week started with growth.

The rate of sowing of spring wheat in the US was below market expectations – 82% (as of June 5) against expectations at the level of 86% (97% on average over five years). The pace of corn sowing (94%) and the first assessment of the condition of the crops were above market expectations. The share of winter wheat crops in good and excellent condition again slightly increased from 29% to 30% against 50% last year.

Crops in France continue to deteriorate, with the share of soft wheat in good and excellent condition as of May 30 down to 67% from 69% last week and 80% last year. For the next two weeks, rains and above-normal temperatures are predicted in the country, which most likely will not have a significant positive impact on future crops. Moreover, they are accompanied by hail storms that damage crops, analysts said.

Argentina is sowing spring wheat in drought conditions. As of May 31, 14% of the area was sown against 18% on average. The Buenos Aires Grain Exchange BAGE lowered its 2022/2023 wheat planting area forecast by 0.1 million tons to 6.5 million tons, 0.2 million hectares lower than last year.

In Australia, on the contrary, the initial conditions for the formation of the crop are positive, analysts predict the harvest of 30-35 million tons of wheat, including by increasing the area and maintaining the yield at a high level (the average production over 10 years was 24.8 million tons, in 2021 a record 36.3 million tons were collected.

On Friday, June 10, the market is waiting for the release of the USDA monthly report.

Last week, Egypt rejected a ship of Indian wheat, which had previously been rejected by Turkey due to the detection of a plant disease.
Jordan purchased 60,000 tons of feed barley at $444.9 per tonne C&F, almost on par with a week ago. A new tender for wheat is expected next week, which was previously canceled due to the only offer received (Romanian wheat).


Volga Baikal AGRO News Update ......

Agriculture News Russia and World Grain News !!!