Prices in the grain market also continued to move mainly sideways in the last trading session. There is, however, a slight discrepancy between the quotations in the US and the EU. The major uncertainty factor in the wheat market is and remains the grain deal between Russia and Ukraine under the UN flag. There is still no clarity, but a UN chief said he was "relatively optimistic" about an extension of the deal.
The wheat quotation on the Matif yesterday lost €2,25 to close at €334,25 per tonne. The wheat price has therefore fallen to the lowest level in more than a month. On the CBoT, the provisional lowest point was reached a day earlier. Last trading session, the December contract for wheat on the Chicago exchange rose 0,7% to $8.40,50 per bushels (approximately €307 per tonne). Corn and soy closed slightly lower on the American stock market.
A slightly weaker dollar and a disappointing wheat harvest in Argentina provided a small boost to the US market. Earlier this week, the US agricultural attaché in Buenos Aires made a significant adjustment to the USDA figures on the Argentine grain harvest. Yesterday, the Rosario grain exchange also made a significant adjustment to the expected wheat harvest. They now estimate the proceeds at 13,7 million. That was still 15 million tons in the previous forecast.
Ukraine
According to analysts, the European wheat quotation was somewhat under pressure due to competition from the supply of cheaper wheat from the Black Sea region. Players in the grain market are eagerly awaiting whether and how the grain deal will be continued after mid-November, when the current agreement expires. Yesterday (Wednesday, October 26), UN chief executive Martin Griffiths said he was 'relatively optimistic' about the chances that the deal allowing wheat exports from Ukraine via the Black Sea would continue beyond mid-November. Earlier this month, a UN delegation traveled to Moscow for consultations with Russian authorities. "We now want to see the deal renewed quickly," Griffiths told journalists during a press meeting. "It is important for the market. It is important for continuity. And I am still relatively optimistic that we will achieve that. We are working hard on it."
Meanwhile, grain exports from Ukraine have faltered over the past ten days. This is evident from the figures published by the Ukrainian Ministry of Agriculture. The volume exported so far this month remains 9% behind exports in the same period last year. That fuels concerns about the Kremlin's coaching of the current grain deal. Ukraine raised the alarm about this on Sunday, warning that capacity is only being used at 25% to 30%.