Kazakhstan has the most expensive wheat in the world

The analyst of the World of NAN editorial board has prepared a small review of the world markets of agricultural products for October 16 - 27.

Wheat prices in the world over the past two weeks showed a slight decline. The price for soft wheat in Chicago fell by 0.7%, reaching $211 per ton. But hard red winter fell in price by 3.8% ($236). However, in London, wheat prices rose by 1.3% over the same period.

Some pressure is brought by the data on wheat harvest. The International Grains Council increased its global production forecast by 2 million tons to 785 million tons. Turkey expects a 10.4% y/y increase in the harvest, in the EU the harvest forecast was raised by 200 thousand tons. In the US, export contracts for this season reached 11.1 million tons, which is 6% worse than last year's result. On the other hand, Ukraine's exports since the closure of the grain corridor have fallen by 32% y/y.

Prices for exported Russian wheat on the Black Sea practically did not grow. The index for two weeks grew only by 0.2% and reaches $252 per ton. According to the ETS commodity exchange, the bid price of soft wheat of 3rd class with gluten 27% decreased from ₸150 thousand to ₸144 thousand per ton. There is also a bid for this wheat, which fell from ₸139.5 thousand to ₸138.3 thousand per ton. At the same time, there were no deals on the exchange. A more relevant benchmark for the market will probably be the announced prices from the Prodkorporatsiya. The company is ready to pay ₸130 thousand per ton for the 3rd class wheat with gluten from 27%, and with gluten from 23% ₸120 thousand.

Sugar rose in price by 1.9% over the two weeks, with the price per tonne in London hitting $742. Prices have so far failed to renew the highs of mid-September. The International Sugar Organization reports that sugar production will fall by 1.2% y/y and the deficit will be 2.1 million tons. On the other hand, Brazil continues to show a marked increase in sugar production, with growth rates reaching 23.6% y/y this season.

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