Bloomberg writer Allison Nicole Smith reported yesterday that “Wheat futures fell in a generalized collapse of raw materials markets assessed Ukraine-Russia talks and traders were awaiting a Federal Reserve decision on U.S. interest rates this week. ”
Smith explained that “Chicago wheat rose 3.8% earlier after Interfax initially reported that Russia was considering a broader export ban. Interfax later clarified that the ban would be only cover exports to the Eurasian Customs Union.”
The Bloomberg article added that “although Russia exceeded its seasonal wheat export peak, it about 8 million tonnes remained to be shipped between March and Junethe United Nations estimated last week.
Reuters News reported yesterday that “Russia gradually resumes wheat exports from its Black Sea ports while shipping in the Sea of Azov remains restricted, analysts said on Monday. ‘Exports continue of the five Black Sea terminals (grain export),” agricultural consultancy IKAR said in a note.
More broadly, Bloomberg’s James Poole reported today that,
The turmoil in the global wheat market has eased somewhat as traders seek greater clarity over supplies from the crucial Black Sea region as Russia’s war in Ukraine rages on.
“On 28 ships left Russian ports since last week, carrying approximately 350,000 tons of staple crops, such as wheat, compared to 50 vessels the previous week, according to Nabil Mseddi, managing director of Geneva-based AgFlow, which focuses on the collection, aggregation and redistribution of agricultural data. Maritime traffic at Ukrainian ports remain stationary. »
Poole added that, “In a region ravaged by war Ukrainemajor producer of cereals and sunflowers, farmers can plant almost 40% less than a year earlier, consultant APK-Inform said in a note, citing a preliminary estimate. Yet plantings cannot start in many key regions and supply chain disruptions hamper planting and yieldsIt said.”
Yesterday too, Dow Jones Writer Kirk Maltais reported that “The application of pressure on grain on Monday is also the sentiment of some traders who are examination how much the disruption of the war in Ukraine will really have an impact the availability of cereals in the region, as well as export stream out of the Black Sea ports.
Reuters News reported today that “Russia said on Tuesday that there was no risk of food shortages on the domestic market and warned consumers against rushing to stock up on basics after the West imposed sanctions on Russia for its invasion of Ukraine.
Meanwhile, Bloomberg writer Jonathan Gilbert reported that, “Argentina has prevented agricultural traders from registering shipments of soybean meal and oil for exporta decision it usually makes before raising taxes on shipments, when the government is expected to seek to faucet the global crop recovery.
“Argentina is the largest exporter of soybean meal for livestock feed and soybean oil for cooking and biofuels. Farmers in the South American nation start harvesting the beans at the end of the month, with most of the field work being done in April and May. Ukraine is one of the world’s leading suppliers of a competing sunflower-based oil.
Taking a closer look at wheat production in the United States, Reuters writer Karl Plume reported yesterday that “Drought worsens in the southern plains of the United States threatens the region winter wheat harvest just as the Ukrainian crisis is reducing global supplies.
“Some farmers in the southwest KansasAmerica’s leading wheat-producing state, not received much measurable rain or snow because October. Winter wheat is planted in the fall, goes dormant in the winter, and begins to produce green shoots in the spring. Good soil moisture is essential at this stage for the crop to thrive.
Plume pointed out that “Meanwhile, the winter wheat harvest in Chinathe world’s largest producer grain, should be among the worst ever after heavy rains, plantings were delayed.
And Reuters editor Julie Ingwersen reported yesterday that “the U.S. Department of Agriculture’s (USDA) National Agricultural Statistics Service in a Weekly Crop Report released Monday assessed 23% of the Kansas winter wheat crop in good to excellent conditiondown 24% a week earlier.
“For Texasthe No. 2 winter wheat state by seeded acreage, USDA noted only 6% of the harvest good to excellentdown 7% the previous week. The USDA rated 75% of the Texas crop as poor to very poor, stable from the previous week.
“For Oklahomathe USDA noted 24% of the winter wheat harvest in good to excellent conditionfrom 15% a week earlier.
“For Coloradothe USDA noted 18% winter wheat like good to excellenta drop 21% in the previous state report, released in late February,” the Reuters article said.
Yesterday too, Reuters editors Muyu Xu and Dominique Patton reported that, “China started the release of more than 3 million tons of fertilizer of its commercial reserves in March for spring farming, its state planner said Monday.