World grain prices: volatility of wheat and resilience of corn. Russian exports are aiming for new records.

On the past week, from 11.11.22 to 18.11.22, world prices for wheat behaved differently. The price for:

• soft red winter wheat on the Chicago Board of Trade (CBOT, ZW) fell to 803.25 cents/bushel (-1.29%);
• hard red winter wheat on the Kansas City Board of Trade (KCBT, KE) decreased to 934.25 cents/bushel (-0.98%);
• hard red spring wheat on the Minneapolis Grain Exchange (MGE, MWE) rose to 951.50 cents/bushel (0.61%);

The contract price for corn on the Chicago Board of Trade (CBOT, ZC) increased to 667.75 cents/bushel (+1.48%). The price for rice in Chicago (CBOT, ZR) rose to $17.63/cwt (0.06%).

Russian indicative prices (FOB Black Sea):

• wheat climbed to $313.30/ton (0.16%);
• barley remained unchanged at $286.70/ton (0.00%);
• corn decreased to $231.00/ton (-3.06%);

Russian wheat index, CPT Novorossiysk, fell to 14624 rubles/ton (-2.86%).

Prices for Russian wheat (protein 12.5%, FOB Black Sea) for DEC 22 delivery decreased to $317.25/ton (-$0.75/ton), for corn decreased to $257/ton (-$0.75/ton).

Domestic purchase prices for 4th class wheat, protein 12.5%, at port elevators of the Black and Azov Seas for the reporting period:

• Azov – 12500 (-100) rubles/ton
• Caucasus (port) – 13100 (0) rubles/ton
• Novorossiysk – 14500 (+700) rubles/ton
• Rostov-on-Don – 12600 (0) rubles/ton
• Taganrog – 12100 (-100) rubles/ton
• Taman – 13900 (0) rubles/ton

A grain deal has been extended for another 120 days from November 19. Since its conclusion, more than 11 million tons of grain and food have been shipped.

From August 1 to November 18, 2022, 1741.2 thousand tons of grain were purchased for the intervention fund for a total of 26249.7 million rubles.

Grain exports from Russia in the current 2022/23 agricultural year are approaching last year's figures, amounting to 15.7 million tons compared to 15.6 million tons last year.

The International Grains Council raised its forecast for wheat exports from Russia by 4.5 million tons, reaching 41.1 million tons. Rusagrotrans expects a historical record in wheat exports of 43.5 million tons.

RZD proposes to Kazakhstan to reduce the transit tariff for the transportation of agricultural products, including grain, through the territory of the republic.

The Subcommittee on Customs Tariff Regulation supported the proposal of the Russian Ministry of Agriculture to increase the quota for grain exports in 2023 to 25.5 million tons.

Russian Ministry of Agriculture proposes to establish a fixed duty on grain exports at the exchange contract date.

Customs duties starting from November 23, 2022, on wheat and meslin will decrease to 2735.2 rubles/ton (-186.9 / -6.40%), on barley will decrease to 2430.0 rubles/ton (-256.7 / -9.55%), on corn will decrease to 193.8 rubles/ton (-253.7 / -56.69%).

Ukraine harvested 39.1 million tons of grain, Kazakhstan harvested 22.1 million tons, Belarus harvested 9.4 million tons, and Azerbaijan - 2.88 million tons of grains.

More details in the Grain Market Review.

zerno.ru