SovEcon: Russian and global grain market news – July 8, 2024

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

On Friday, grain prices rose. The September SRW wheat contract closed at $5.90/bushel ($217/mt; up 2.9% compared to Wednesday). The September Euronext wheat contract rose to €228.75/mt ($248/mt; up 1.4% compared to Thursday). The September U.S. corn contract closed at $4.11/bushel ($162/mt; up 1.4% compared to Wednesday).

U.S. wheat sales exceeded expectations, according to USDA data. For the week ending July 27, 0.8 million metric tons (mmt) of wheat were sold, against an estimate of 0.4-0.7 mmt.

In France, as of July 1, 1% of the wheat crop had been harvested, compared to 8% last year and 5% on average. The share of the crop in good and excellent condition decreased by 2 percentage points to 58% over the week, which remains the lowest level since 2020.

A lack of moisture in early spring, as well as a sharp increase in temperatures in April, triggered accelerated plant development in the Rostov region, said the region’s Minister of Agriculture, Konstantin Rachalovsky. The official expects grain production to decline compared to last year’s record levels.

Anomalous heat is expected in several Russian regions this week, said Roman Vilfand, scientific director of the Russian Hydrometeorological Center. According to him, temperatures in the Volgograd and Rostov regions could rise to +42°C. Rain, thunderstorms, and strong winds are expected in the Rostov region and Stavropol Territory.

The Italian company Bonifiche Ferrarsi SpA will develop an agricultural project in Algeria, under which 36,000 hectares in the Timimoun state will be adapted for growing wheat and legumes. 49% of the project funding will be provided by the Algerian investment fund, with the remainder financed by the Italian company.

SovEcon is hosting a webinar on Black Sea grain market in 2024/25. Join us next Thursday, July 11; 10:30AM US Eastern / 4:30PM Central European / 5:30PM Moscow. Check out our website to find out more

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