During the past week, from 21.06.24 to 28.06.24, international wheat prices showed mixed movements. Prices for:
- winter soft red wheat on the Chicago Board of Trade (CBOT, ZW) decreased to 553.50 cents/bushel (-1.42%);
- winter hard red wheat on the Kansas City Board of Trade (KCBT, KE) increased to 587.50 cents/bushel (+1.08%);
- spring wheat on the Minneapolis Grain Exchange (MGE, MWE) rose to 613.00 cents/bushel (+0.25%);
The contract for corn on the Chicago Board of Trade (CBOT, ZC) shrank to 397.25 cents/bushel (-8.68%). The price of rice in Chicago (CBOT, ZR) declined to $16.97/cwt (-6.76%).
Prices for Russian export products (FOB Black Sea):
- wheat increased to $236.60/ton (+0.34%);
- barley rose to $176.00/ton (+6.86%);
- corn climbed to $181.20/ton (+2.84%);
The Russian wheat index, CPT Novorossiysk, decreased to 16183 rubles/ton (-0.19%).
Purchase prices at Black Sea and Azov Sea port elevators for 4th grade wheat, 12.5% protein for the reporting period:
- Azov – 13500 (-500) rubles/ton
- Novorossiysk – 16800 (0) rubles/ton
- Rostov-on-Don – 15000 (0) rubles/ton
- Taman – 15200 (-800) rubles/ton
16 regions of Russia have started the harvesting campaign. According to the Ministry of Agriculture, work is ahead of schedule – 1.5 million hectares have been harvested, yielding 6.2 million tons of grain. Yield remains at the level of the previous year.
A million tons of grain have been harvested in the Rostov region. In the Stavropol Territory, the total grain harvest reached 2.7 million tons, with a third of the harvesting work completed. Agrarians in the Krasnodar Territory have harvested over 2 million tons of grain.
The sowing of spring wheat in Russia is nearing completion. More than 54 million hectares have been sown, which is 97.2% of the projected area.
The Russian government adjusted the calculation of export customs duty rates on grain crops. The main export prices used in the calculation of rates have been raised by 1,000 rubles per ton for wheat and wheat-meslin (from 17,000 to 18,000 rubles), barley, and corn (from 15,875 rubles to 16,875 rubles). The text of the resolution dated June 28, 2024, has been published on the Official Legal Information Portal.
The export of wheat may decrease by almost a third in July, according to the analytical center "Rusagrotrans." The reason for this reduction is the loss of competitiveness of Russian wheat in the global market and the limited sales by producers who expect price increases.
The International Grain Council (IGC) lowered its forecast for grain and wheat harvest in the new agricultural year in Russia. Grain harvest in Russia has been revised downwards by 5.2 million to 121.7 million tons. The wheat harvest forecast has also been revised downwards to 81.8 million tons (-3.7 million).
The Ministry of Agriculture of the Russian Federation reported that the BRICS countries have supported the initiative to establish a Single Grain Exchange and are starting work in this direction.
From July 3, 2024, export duties on wheat will be reduced, while those on barley and corn will remain unchanged.
Only one grain purchase was made in the State Intervention Fund this week. In total, from 11.12.2023 to 28.06.2024, the state fund purchased 1074.9 thousand tons of grain for 15,387.8 million rubles.
BELARUS
25 thousand tons of winter barley have been harvested, with a crop coverage of 2%. On the same date a year ago, harvesting had not yet begun.
UKRAINE
16 regions have already harvested early grain crops, totaling over 700 thousand tons of the new harvest.
In the agricultural year 2023/24, grain and legume exports as of June 28 exceeded 50 million tons. A year earlier, 48.9 million tons of grain had been exported by this date.
