The rise in grain prices: wheat and corn on exchanges have reached new highs, driven by increased exports.

On Thursday, August 29, 2024, the wheat market continued its rise. Soft red winter wheat quotes on the CBOT exchange in Chicago rose to $201.63 per ton, hard red winter wheat futures on the KCBT exchange in Kansas City reached $205.95 per ton, and hard red spring wheat futures on the MGE exchange in Minneapolis increased to $216.97 per ton.

On Monday, September 2, it was announced that the exchanges in the USA would be closed due to Labor Day.

Wheat futures on all three exchanges closed higher. CBOT futures in Chicago rose by 7¼¢, Kansas City showed an increase of 4¾¢, and Minneapolis rose by 6¾¢.

Prices for food wheat in the USA and Europe continued to rise on Thursday, amid concerns about the crop in Western Europe and growing sales and exports in the USA, according to a government report.

According to weekly export sales data, 532,079 tons of wheat were sold last week, the highest volume of sales in the past 6 weeks. The Philippines is the largest buyer with a volume of 97,000 tons, and South Korea purchased 93,400 tons.

The EU Commission reduced its wheat production estimate to 116.1 million tons, and the export forecast was lowered by 6 million tons to 26 million tons. Wheat stocks also increased by 1.8 million tons to 12.5 million tons.

Romania plans to acquire the Danube port of Giurgiulesti in Moldova from the European Bank for Reconstruction and Development (EBRD). This will allow Romania to strengthen its logistical role in Central and Southeastern Europe.

Corn futures in the USA also rose on Thursday due to supply shortages, drought, and upcoming Labor Day celebrations.

December corn futures closed up by 5¼ cents.

Exports of corn and soybeans from the USA last week exceeded analysts' expectations, indicating a recovery in demand due to low prices. This also stimulated covering short positions before the end of the month.

For this week, 15,291 tons of old crop corn for 2023/24 were sold, and sales of new crop amounted to 1.494 million tons. Mexico became the largest buyer with a volume of 419,700 tons, and 391,200 tons were sold to unknown destinations.

Soybean futures on the CBOT exchange also rose on Thursday after weekly export sales data exceeded market expectations, and covering short positions also helped price recovery.

Soybean oil futures in Chicago sharply rose before the holidays due to rumors of a possible restriction on imports of used cooking oil (UCO) in the USA. CPO futures in Malaysia also rose due to active buying.

November soybean futures closed up by 15½ cents.

The weekly export sales report noted a reduction in old crop by 143,600 tons, below expectations, but new crop sales remained active at 2.616 million tons, exceeding forecasts. China purchased 870,000 tons, and 845,600 tons were sold to unknown destinations.

December wheat futures on the CBOT closed at $5.48-3/4 per bushel, December corn futures rose to $3.96 per bushel, and November soybean futures reached $9.92-1/2 per bushel.

French wheat on the MATIF exchange continued its ascent. December wheat quotes reached €215.75 per ton (equivalent to $239.91), and corn prices rose to €198.25 per ton (equivalent to $214.29).

On MATIF, the quotes for November and December contracts closed as follows:

• Wheat milling (Dec 2024) - €215.75 per ton ($239.91) - up by 0.59%;
• Corn (Nov 2024) - €198.25 per ton ($214.29) - up by 0.44%;
• Sunflower seed (on SAFEX exchange) - 9002.00 zar/ton ($46310) - up by 0.02%;
• Sunflower oil (08/16/2024 Rotterdam, bulk FOB) - $1040.00 per ton ($95100).

Exchange rates on 08.29.2024:
1 US Dollar = 91.4449 Russian Rubles
1 Euro = 102.0798 Russian Rubles
1 Canadian Dollar = 67.9383 Russian Rubles
10 South African Rand = 51.4443 Russian Rubles