Wheat prices showed a slight recovery

The World of NAN editorial analyst presents a brief overview of the world markets of agricultural products for 24 June - 5 July.

Wheat prices in the world have shown a slight recovery in the last two weeks. The Chicago soft wheat price rose by 1.6% during this period, reaching $210 per tonne. Hard Red Winter was up 2.5% to $219 per tonne. The growth occurred on the background of good export data from the USA. From June 20 to 27, wheat exports totalled 805,000 tonnes, the highest since December. And in May, wheat exports totalled 1.6m tonnes, which is a 3-year high. On the other hand, SovEcon raised its forecast for Russian wheat production by 3.4m tonnes (to 84.1m tonnes).

The price index for exported Russian wheat in Black Sea ports slightly decreased to $235 per tonne. The duty on Russian wheat exports fell by 32% over the two weeks to 1701.3 roubles per tonne on the back of the recent fall in world prices. According to the data of Kazakhstan commodity exchange ETS, the last deals on different types of wheat were held on 28 June. On that day, the price of 3rd grade wheat was ₸110,000 per tonne, 4th grade - ₸98,000, and 5th grade wheat - ₸90,000 per tonne. For sugar, several transactions took place at once last Friday at around ₸355k per tonne, indicating a slight increase in price over the past two weeks.

In London, sugar prices recovered another 2.9% over the two weeks to reach $575 per tonne. At one point the price reached $600 amid concerns about dry weather in Brazil due to below normal rainfall. In addition, a red rot disease was detected in the key sugarcane growing region of India. On the other hand, prices then fell amid speculation that India will increase sugar export quotas, as experts estimate the surplus at 3.6 million tonnes. Also, sugar production in Brazil continues to grow: from March to June 15, production totalled 10.95 million tonnes (+14.4%).

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