Wheat prices on world exchanges resumed downward trend
After a sharp jump, the price of wheat has resumed its decline under the pressure of abundant supply amid low demand, Grain Trade informs.
"Despite the decline in production, Argentina will significantly increase its exports in November-December due to a likely increase in export duties by the government. In late November, exporters contracted 9.95 mln t of wheat or 80% of the official export forecast for 2019/20. According to estimates by Bolsa de Comercio de Rosario, in December the country will export a record 3.63 mln t of wheat. As of November 27, 976 thou. t of new crop wheat were exported, 30% higher from last year's volume and 26% more vs. a three-year average," the message reads.
Infographic guide Ukrainian Agribusiness 2018/19
As reported, India will harvest a bumper crop of wheat in 2020, which will force the government to introduce export subsidies against a backdrop of historically high stocks. Iran entered the market for the first time in three years to buy wheat and supposedly purchased one vessel of Russian grain.
"The market supported the active wheat export from the EU, which totalled 227.59 thou. t over the week. Since the start of the season, supplies have reached 11.1 mln t, 58% higher from last year's comparative period. Algeria's tender for the purchase of wheat with delivery in February, traditionally won by French wheat, is encouraging," writes Grain Trade.
Offer prices for 12.5% protein Russian wheat with delivery in December rose to 210-212 USD/t FOB, while 11.5% protein Ukrainian wheat remained at 205-210 USD/t FOB for December-January delivery.
As a reminder, as of December 2, wheat export shipment from Ukraine amounted to 13.47 mln t, 4.06 mln t more y-o-y.