Black Sea grain prices rise on Russia's possible export limits
Cereals' prices are rising in the Black Sea region amid possible restrictive export measures from Russia, like the soon implementation of quotas, the Agritel consultancy reports. Corn prices are also increasing in Ukraine, particularly on distant deliveries, analysts add.
"Winter is arriving in the Black Sea basin with a drop in temperatures expected this week. This could disrupt the latest sowings already affected by the autumn's water deficit," the report reads.
It is marked that the markets continue to display firmness in the absence of obvious bearish elements on short term.
On the international scene, the US sold nearly 257,000 t of soybeans to undisclosed destination while Iraq is buying 500,000 t of wheat. Algeria is launching a wheat tender for three periods of shipments between 15 December and the end of January. The specifications concerning bug damage have been raised from 0.5% to 1%.
"On Euronext, wheat prices could come back to test the psychological threshold of 300 EUR/t on the December expiry. Note that today the December options will expire. The corn progressed clearly due to harvesting delays and grain drying difficulties with the elevators," Agritel analysts comment.
Rapeseed continues to climb in the wake of canola, which has set new records.
US corn export sales on Friday amounted to 1.067 mln t, within the range of expectations. This cereal benefits from the support of the ethanol industry with an increase in prices and improved margins to meet growing demand.
"Soybeans also benefited from a substantial increase in meal prices in a context of higher demand. Soybeans are competitive in the animal food sector, particularly against expensive corn. At 1.289 mln t, soybeans export sales were within the range of expectations," analysts observe.
As of 10 November, grains export from Ukraine summed 20.98 mln t, having exceeded the previous year's levels by 19%. Wheat export from Ukraine in 2021/22 was limited to 25.3 mln t. The Memorandum of Understanding was signed by the Agrarian Ministry and grain market participants.