From S&P Global Platts:
Low gas stocks and supply constraints support prices in Europe and the US, while oil markets watch for Iran's return to the international market. Plus, estimates lowered for Russia's wheat crop, and Texas adds wind and battery storage to its generation resource.
4. Russian wheat prices soar amid expected lower output
What's happening? Russia, the world's largest wheat exporter, harvested 50.2 million mt of the grain between the start of the MY2021-22 and Aug. 3, compared with 53.4 million mt during the same period last year, the Russian agricultural ministry said in an Aug. 5 report. As of July 29, the country exported 1.7 million mt of wheat, 34% behind the last year's pace, according to the Russian Federal Service for Veterinary and Phytosanitary Surveillance. Concerns about declining supply pushed up prices of Russian 12.5% protein wheat to $267.5/mt on Aug. 6, up 14.8% compared with a month earlier.
What's next? S&P Global Platts Analytics has cut its estimate for Russia's wheat output in marketing year 2021-22 (July-June) to 80.2 million mt, against an earlier estimate of 83.8 million mt, due to a decline in the winter crop area. Major Russian agencies have also scaled down their projections due to lower sowing of winter wheat and anticipated poor yields....
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