World wheat prices fell by 8% amid talks between Ukraine and Russia

The world continues to watch Russia’s senseless war against free Ukraine in the 21st century, so “news from the front” has a significant impact on world prices, given the almost blocked wheat supplies from the two main exporting countries.

Military action in the south, east and north of Ukraine continues. Russia has already lost more than 13,800 troops, 404 tanks, 1,279 infantry fighting vehicles, 81 aircraft, 95 helicopters and other equipment. The heavy losses and the lack of any military achievements will anger the Russian army, which is brutally destroying peaceful cities with artillery, missiles and aircraft.

At the same time, against the background of defeats on the fronts, the Russian delegation became more accommodating, removed the ultimatums and proposed 15 points that Ukraine must fulfill for a peace agreement. This proposal was disseminated by world agencies yesterday as a preliminary peace agreement, which led to lower world wheat prices. However, these proposals do not suit Ukraine, so it is unlikely to agree to peace on such terms, as society does not want peace at any cost, especially after significant losses among civilians, destroyed cities and more than 3 million forced emigrants.

• May futures for European wheat on the Paris Euronext yesterday fell by 6.3% or 23 € / t to 363.5 € / t or 401.6 $ / t, and September – by 7.75 € / t to 318, 5 € / t. This indicates that traders expect the conflict to end soon.

Exports of wheat from the EU in 2021/22 MY as of March 13 amounted to 19.1 million tons, which is only 1.4% lower than last year. Due to high world prices and the absence of Ukrainian and Russian wheat on the market, EU countries can export another 16-17 million tons of wheat and reach the projected USDA level.

May futures in the US collapsed yesterday:

• 8.6% or $ 31.2 / t to $ 392.9 / t for soft winter SRW wheat in Chicago,
• 8.6% or $ 31.2 / t to $ 394.1 / t for winter winter HRW wheat in Kansas City,
• 6% or $ 22.05 / t to $ 385.9 / t for drought spring HRS wheat in Minneapolis,
• 2.5% or $ 10 / t to $ 397.5 / t for Black Sea wheat in Chicago.

Usually in the spring, importing countries intensify their purchases. So far, many tenders have been announced for the purchase of food wheat. Thus, the TMO of Turkey is looking for 270 thousand tons, Bangladesh – 50 thousand tons, Jordan – 120 thousand tons, Japan – 105 thousand tons. The refusal of world traders from Russian wheat and the lack of supplies from Ukraine will keep world prices high.

GrainTrade

Tags: Ukraine, Russia, Turkey, prices, wheat, Jordan, Bangladesh, Japan