Wheat and sugar grow in price on world markets

The World of NAN editorial analyst presents a brief overview of the world markets of agricultural products for March 18 - 29.

Wheat prices in the world recovered in the previous two weeks. The Chicago soft wheat price rose 6% to $206 per ton. Hard Red Winter was up 3.4% to $215. In the U.S., statistics showed wheat acreage fell from 49.6 million to 47.5 million acres. U.S. wheat stocks reached 1.09 billion bushels on March 1, up 15.5% from 2023. U.S. wheat export bids totaled 340,000 tons for the week ending March 21. This figure is higher than the average of the 4 previous weeks.

Prices for Russian export wheat in Black Sea ports continue to fall, although the rate of decline has decreased. The price index fell by 0.5% and was at the level of $235 per ton. Actual duty on wheat exports from Russia for these two weeks increased by 5.7% and is 3,323 rubles per ton.

According to data of Kazakhstan commodity exchange ETS, there were no deals on wheat in 2024. As for sugar, the last deals were made on March 28. The price of one ton was at KZT450 thousand with terms of delivery FCA in Almaty. For two weeks the price with these delivery terms did not change. Also there were deals with EXW delivery terms, at a price of almost KZT408 thousand per ton.

In London, sugar for these two weeks increased in price by 4.6%. Exchange price in London reached $653 per ton of sugar. The continued rise in oil prices has most likely been the main factor in the rise in sugar prices, as it stimulates the production of ethanol from cane instead of sugar. Also in the US, local producers have called on the government to cut sugar imports from Mexico by 44%, which is likely to spur demand for sugar from other countries. In India, sugar production from October to March fell 0.7% y/y to 28.1 million tons. On the other hand, it should be recalled that Brazil's production growth for the same period amounted to almost 26% y/y.

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