According to the latest news, Paris wheat December futures prices remained strong. On Friday, the closing price was at €192.25/t on. A slight discount on the previous Friday at €194.50/t. Significantly, Chicago wheat prices declined last week in line with the strengthening dollar, forcing prices down to remain competitive on the export market.
Besides, the wheat crop in Russia in 2020, harvested in mid-September, has already become the second largest after the record in 2017. According to the Russian Federation Ministry of Agriculture, wheat
amounts to 82.9 million tons, while the bread wheat harvest hit the third-largest volume at 57.7 million tons.
The Ministry of Agriculture reported that Russia harvested a record in 2017. Then, the harvest of this crop amounted to 86 million tons.
As Chicago wheat prices declining last week, Russian export prices dropped slightly. As it is known, dryness affected planting and strong prices, the Russian Agriculture ministry is thinking about imposing a quota on exports in Jan-Jun 2021.
Elsewhere, European Association Coceral revised down the EU maize crop forecast for 2020 to 62.8Mt, a cut from the forecasted 64.6Mt last month.
Furthermore, Demand remained strong last week, supporting Ukraine’s 2020 milling exports by about $6/t.
Kazakhstan is going to export 6.7Mt
Kazakhstan is going to export 6.7Mt of wheat and the flour this season. Meanwhile in the previous session, exports stood at 6.6Mt.
Remarkably, UK feed wheat futures continued to recover last week. The November 20 contract closed on Friday at £182.75/t, increasing £3.50/t on the prior week’s close. With the previous week’s movements, November 20 and May 21, contracts changed with the same amount. The November 21 contract now stands at a £27.75/t discount to November 20.
The ministry noted that the gross harvest increase is also due to the harvest of valuable and robust wheat.
Center for Grain Quality Assessment reported that its production touched record values in modern Russia’s whole history – 25.9 million tons with a share of 31.2% of the total output.
At present, 121 million tons of grain has been threshed from 42.1 million hectares with a yield of 28.8 c / ha.
In September, export prices for Russian wheat increased to record levels this season, which started on July 1, 2020. At the end of the week, quotations for wheat with a protein level of 12.5% grew by $8 to $222 per ton.