World prices for wheat have decreased, while prices for corn have increased. The harvest in Russia is higher than last year: wheat - 43.86 million tons, barley - 4.64 million tons.

During the reporting week, from 07/19/24 to 07/26/24, there was a decrease in world wheat prices. Prices for various types of wheat are as follows:

• Soft red winter wheat on the Chicago Board of Trade (CBOT, ZW) decreased to 523.50 cents/bushel (-3.55%);
• Hard red winter wheat on the Kansas City Board of Trade (KCBT, KE) dropped to 545.50 cents/bushel (-4.30%);
• Hard red spring wheat on the Minneapolis Grain Exchange (MGE, MWE) declined to 588.50 cents/bushel (-3.49%);

The contract for corn on the Chicago Board of Trade (CBOT, ZC) increased to 394.50 cents/bushel (+1.02%). Prices for rice in Chicago (CBOT, ZR) fell to $15.23/cwt (-22.10%).

Indicative prices in Russia (FOB Black Sea):

• wheat decreased to $217.50/ton (-4.27%);
• barley dropped to $177.70/ton (-0.28%);
• corn rose to $187.60/ton (+0.43%);

The Russia wheat index, CPT Novorossiysk, decreased to 15676 rubles/ton (-0.44%).

Domestic purchase prices for 4th-grade wheat, with a protein content of 12.5%, at Black and Azov Sea port elevators for the reporting period are as follows:

• Azov – 14000 (+500) rubles/ton
• Novorossiysk – 16750 (+550) rubles/ton
• Rostov-on-Don – 14100 (+600) rubles/ton
• Taman – 15550 (+450) rubles/ton

According to the Russian Ministry of Agriculture, as of July 22, 31.1% of grain and leguminous crops had been harvested. The total harvest amounted to 50.59 million tons, compared to 24.91 million tons in 2023. Particularly noteworthy is the wheat harvest, which reached 43.86 million tons (compared to 19.43 million tons in 2023), as well as barley, with a harvest of 4.64 million tons (compared to 3.61 million tons in 2023). Harvesting rates are more than twice those of the previous year.

As of July 28, harvesting of early grain and leguminous crops has been completed in the Rostov region, Krasnodar Krai, and Stavropol Krai.

The State Duma passed a bill in the first reading that simplifies the procedure for testing seeds for the presence of genetically modified organisms (GMOs). According to the bill, the obligation to test for the presence of GMOs at the stage of determining the varietal and sowing qualities of seeds will be excluded. This will have a positive impact on the financial position of farmers and seed companies.

The Russian Ministry of Agriculture has signed a contract for construction and installation work at the Fedorovskoye hydrosystem in Krasnodar Krai for almost 9.2 billion rubles. The completion of the work is planned for January 26, 2028. The successful completion of work on the hydrosystem is of particular importance for rice production in Russia.

In the first half of 2024, sales of domestic agricultural machinery decreased by 10% due to reduced demand from agricultural producers. Sales of combine harvesters decreased by 22%. According to Rosspetsmash, all market segments showed negative dynamics in shipments.

Eurasia Logistics acquired a grain terminal in Taganrog on the Azov Sea. The former owner, Alexander Rappoport, is selling assets to exit the grain business. The new owner will have to develop grain trade to recoup costs, according to Kommersant citing its sources in the market.

In the first half of 2024, Russian farmers took out insurance policies covering 51% more areas under crops compared to the previous year. According to the National Union of Agricultural Insurers, contracts were signed for insurance covering 8.3 million hectares (compared to 5.5 million hectares in 2023).

Starting from July 2, 2024, export duties on wheat were reduced again, while duties on barley and corn remained at zero.

Belarus
Farmers have delivered more than 3.4 million tons of grain and plan to complete the grain harvest by August 8-10, except for buckwheat and millet.
 
Kazakhstan
The plan to reduce areas under wheat this year has been exceeded by 4.7%.

The government is considering the possibility of a complete ban on the import of Russian wheat and the introduction of an export duty on domestic grain starting from September 1, 2024.

Ukraine
The harvest of early grains is complete. 19 million tons of grains were harvested, including 14.7 million tons of wheat and 3.8 million tons of barley. It is expected that 27 million tons of early grains will be harvested this year.

Due to heat and drought, corn yields may decrease by 35%. Analysts note that productive moisture reserves