What is happening to wheat prices?

An analyst of the World of NAN editorial office conducted a brief review of the world markets of agricultural products for December 11 - 22.

Wheat prices in the world have shown multidirectional movement for the last two weeks. The price of soft wheat in Chicago increased only by 0.2%, amounting to $227 per ton. But hard red winter fell 6.9% over the same period ($229). The narrowing price differential was likely due to weak export sales of HRW. Only 64% of the forecasted volume was exported this season, while for soft wheat this figure is 89%.

Overall, US wheat exports are still 2.9% ahead of last year's result.

Prices for Russian export wheat on the Black Sea continue to be at about the same level. The index fell by 0.5% over two weeks and reached $250 per ton.

According to the ETS commodity exchange, the bid price of soft wheat of 3rd class with gluten 23-24% increased from ₸130 thousand to ₸135 thousand per ton. It should be noted that on December 15, a deal for this wheat was held at a price of ₸135 thousand with a volume of 3 thousand tons.

Sugar has fallen in price by another 9.9% in these two weeks, and for the month the price drop has amounted to 20.4%. In London, the price has reached $590 per ton of sugar. This is a new low since March 2023. The decline continues on the back of increased production in Brazil. Last Tuesday, data showed a 35% y/y increase in production in the second half of November, and for this season the annualized increase reached 23.5%. Also in India, the government has ordered a reduction in ethanol production and substitution with sugar to replenish stocks. Analysts believe that will increase sugar production by 2 million tons. However, weak rains during the monsoon season caused production to fall by 10.7% y/y or to 7.4 million tons from October to December.

Смотрите больше интересных агроновостей Казахстана на нашем канале telegram, узнавайте о важных событиях в facebook и подписывайтесь на youtube канал и instagram.