Black Sea grain prices topple undeterred by stable exports
Wheat and corn prices fell slightly early this week in the Black Sea basin, despite a sustained export activity last week in corn for Ukraine, with probably a major buyer, China, the Agritel consultancy reports.
Learn more: TOP 14 Wheat Exporters From Ukraine in 10M 2021
There was an end of session rebound on wheat on Euronext thanks to good international demand and competitive French origins.
"By relaxing its specifications, Algeria once again opens the door to Russian influence. Time will tell what volume will be retained. Another factor of support on Euronext, the chartist analysis with a rebound on the support giving the opportunity to buy for analyst’s funds of these figures," the report reads.
A European association COCERAL estimates that European soft wheat production next year, including Britain, would be 139.8 mln t compared to 143.2 this year. The reason for this forecast is the decrease in acreage in some countries, including France, and the autumn water deficit in Eastern Europe. For barley, COCERAL estimates 2022 production at this stage at 59.0 mln t, compared with 59.4 mln t this year. Maize production is expected to be stable at 66.4 mln t, while rapeseed production is expected to increase to 20.0 mln t, compared to 18.5 mln t this year, analysts add.
Related: Corn 2021: Season Features, Grain Production, Drying Prices in Ukraine
As of December 13, staple grains export from Ukraine reached the volume of 28.3 mln t, which is 20% up YoY. Wheat export since the start of 2021/22 has come to 15.09 mln t.
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.
