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Black Sea corn, wheat prices soar up: Agritel
1 November 2021, 11:00
Prices in the Black Sea area rose significantly yesterday, both for corn and wheat, the Agritel consultancy reports.
Analysts mark that there is some water deficit in Ukraine, which could lead to a drop in autumn plantings compared to expectations.
Learn more: Sowing Online 2021/22: winter barley campaign 67% completed in Ukraine
According to the Russian Minister of Agriculture, grain production this year will amount to 123 mln t, down from 127.4 mln t previously seen. Wheat production is expected to range between 75 and 75.5 mln t. The ministry expects winter grain sowing to be at 19.5 mln ha. To date, plantings remain behind schedule at 17.6 mln ha compared to 18.3 mln ha last year, due to water deficit.
Grain prices fell slightly, despite the firmness in Chicago.
"Some consolidation is taking place after the strong rise of the last few months. The market needs new signals to take a clear direction. From a meteorological perspective, rain is expected in France, before lower temperatures in the next few days," the report reads.
According to the Buenos Aires exchange, wheat production in Argentina is projected at 19.8 mln t this year, up from 19.2 mln t estimated last month. This is due to recent beneficial rains. Soybean plantings are starting and are estimated to be 4.6% complete. Corn plantings are reported to be 27.6% complete.
As of 27 October, corn export from Ukraine made up 2 mln t, wheat 11.74 mln t. Staples export from Ukraine since the start of 2021/22 has increased by 17.5% YoY.
Agricultural commodities formed 45% of the total structure of Ukraine's exports in 2020. Europe imported 32.4% of products shipped.
The USDA in its October report left unchanged the projection for Ukraine's wheat export in 2021/22 at 23.5 mln t, corn supply is forecast lower at 31.5 mln t. The UGA informed about 48.8 mln t of grains and oilseeds export from Ukraine in the 2020/21 season.
