Wheat continues to fall in price on the news of a possible unblocking of Ukrainian ports

Since Tuesday, wheat prices on world stock exchanges have fallen by 1-2% amid talks to unblock Ukraine’s ports through agreements with Russia or with the help of an international military convoy proposed by some countries, including Britain.

Last week, after India banned exports, wheat prices reached record levels, so traders decided to record profits. Despite calls from the United States and other countries not to close exports during such a difficult time, India is not lifting the ban. The USDA representative in India lowered the forecast for the country’s wheat harvest in 2022/23 MY by 11 million tons to 99 million tons due to the heat of March and April.

There are rumors that Russia is ready to open humanitarian corridors in the Black Sea for the passage of ships from Ukrainian ports, but calls for a relaxation of sanctions by Western countries. The conditions that will allow to do so have not been announced yet. The Ministry of Defense of the aggressor announced the daily opening from 08:00 to 19:00 of two corridors for foreign ships from the ports of the Black and Azov Seas: Kherson, Mykolaiv, Black Sea, Ochakov, Odessa, South, Mariupol. These corridors have been announced before, but mined areas of the sea and the lack of security guarantees prevented ships from leaving ports, and some crews left the ships altogether and left Ukraine.

World wheat prices fell in two days:

• 3.7% or $ 15.4 / t to $ 421.9 / t – July futures for soft winter SRW wheat in Chicago,
• 3.5% or $ 15.9 / t to $ 453.1 / t – July futures for winter winter HRW wheat in Kansas City,
• 1.4% or $ 6.6 / t to $ 470.5 / t – September futures for hard spring HRS-wheat in Minneapolis,
• by 2.7% or $ 11.25 / t to $ 403.75 / t – July futures for Black Sea wheat in Chicago.

Against the background of lack of supplies from Ukraine, the EU is accelerating exports, and as of May 22 has shipped 24.13 million tons (from the projected USDA in May 31 million tons), which is almost the same as last year.

• September wheat futures on Paris’ Euronext fell 5.3% or € 21.5 / t to € 404.5 / t or $ 432.1 / t in two sessions on news of a possible unblocking of Ukrainian ports.

AgriCensus reports that seven bids have been submitted for the tender for the purchase of 400-500 thousand tons of food wheat, announced by the Pakistani Trade Corporation TCP, at a price of $ 515.49-537 / t C&F with delivery in June-July. This indicates that so far traders do not see prospects for lower world wheat prices.

Tags: Ukraine, EU, prices, Pakistan, wheat, India, USA