Wheat prices on the Matif in Paris and the CBoT in Chicago rallied strongly on Wednesday, August 29. This came after rumors arose that Russia is considering putting a limit on wheat exports.
De matif closed again on August 29 well above €200, namely €202,75 per tonne. This after previously reaching a low of €197 per tonne. A jump was also made on the CBoT. There the quotation went from $183 per tonne to almost $190 per tonne.
Consultation with the Russian Ministry
The rumors that Russia will restrict exports have not yet been officially confirmed by the Russian Ministry of Agriculture. The rumors arose because the Russian National Association of Exporters of Agricultural Products sent a letter to its members. This after the association had spoken with the Russian ministry on August 28.
The letter revealed that the Ministry of Agriculture is considering limiting grain exports to 30 million tons. On Monday, September 3, another meeting will be held with the exporters to discuss the grain situation in Russia
Less wheat from Russia
With an expected wheat harvest of 70 million tons, about 34 million tons could be exported. Exports would therefore already be lower than was the case last season. At that time, more than 40 million tons were exported. The rumors have an immediate effect, because the market is very rid of your insecurity is. This is mainly due to the low yields in the important production areas.