SovEcon: Russian and global grain market news – April 22, 2024

Daily news and market insights from a leading firm focused on the Black Sea grain markets research

On Friday, U.S. grain prices surged. The July SRW wheat contract closed at $5.67/bu ($208/mt; +2.5% compared to Thursday). The September Euronext wheat contract rose to €215.00/mt ($229/mt; +0.2%). The July U.S. corn contract closed at $4.43/bu ($174/mt; +1.6%).

Rising tensions between Iran and Israel, as well as between Russia and Ukraine, may have supported prices.

Over the weekend, Odesa Oblast was hit several times by drones and missiles. According to Ukrainian officials, on Friday, the Port of Pivdennyi was attacked, damaging storage facilities for agricultural products destined for export to Asia and Africa. Saturday’s attacks targeted what local authorities described as a “transport-logistics facility at the port’s infrastructure.” On Sunday, the region was attacked by drones, damaging a farming enterprise. More information could be found in our Ad Hoc Commentary for Sizov.Report subscribers.

U.S. corn export sales supported prices. On Friday, the USDA reported the sale of 216.5 TMT of corn to Mexico.

SovEcon has lowered its estimate for the 2024 Russian wheat crop by 1.0 million metric ton (MMT) to 93.0 MMT, the first reduction this season, which could have also supported prices.

Wheat stocks in Indian government storage fell to a 16-year low of 7.5 MMT, according to the Food Corporation of India. Local officials said stocks decreased due to wheat sales from reserves to manage grain prices.

From April 1 to 19, Ukraine exported 4.2 MMT of grain, the Ukrainian Ministry of Agrarian Policy reported. The previous year, 2.1 MMT of grain was shipped from the country during the same period.

The Russian government set an additional quota for grain exports of 5 MMT through June 30. The main quota is 24 MMT from February 15 to June 30.

The Argentine Rural Confederation (CRA) demanded the immediate removal of a 12% tax on wheat exports. The CRA is one of the four largest agricultural associations in the country.

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