Black Sea grain prices fall amid sustained export activity: Agritel
Fall of cereal prices was observed in the Black Sea basin, in the wake of other markets, but in a more moderate way, Agritel reports. The export activity remains sustained for these origins, like the Egyptian tender of this Monday in wheat, the consultancy analysts say. The specter of the implementation of export quotas from February by Russia remains, despite the decline in prices in recent days on the international scene.
Panic spreads on the European market, the consequence of the Omicron variant and its impact on the world economy, which is impossible to measure at this stage. This is evidenced by the selling of funds, like the traders' actions on wheat. One can assume that they have liquidated a large part of their long positions in Chicago on this product in the space of only 3 days.
"The European Commission has posted wheat sales outside the eurozone at 11.62 mln t, partly including the French figures, which are currently posted at 1.88 mln t, figures that are still lower than the reality, since the market estimates French exports outside the EU zone to date at over 3.3 mln t," the report reads.
Rapeseed has been the most heavily impacted by the new variant since last week, in the wake of oil, even though the fundamentals for this product are under extreme pressure following the climatic incidents in Canada this summer. Imports of rapeseed in Europe stood at 1.88 mln t on November 28, compared to 3.00 mln t last year to date.
All commodity prices have lost ground in a very important way in Chicago yesterday, thanks to liquidation sales of funds in particular.
"Corn is also losing ground, certainly due to sales by funds, but mainly in the wake of other products. The ethanol sector, which has been very dynamic since the beginning of the campaign, could suffer from a drop in demand in the wake of oil in the event of reconfinement or travel restrictions imposed by many countries," analysts comment.
Previously reported that Egypt's GASC made a sizable wheat purchase in the latest tender. The country's state grain buyer booked Romanian, Russian and Ukrainian wheat.
Since the start of 2021/22, staple grains export from Ukraine has increased by 17.6% to 24.19 mln t.
