From S&P Global Platts:
Russia and China signed new energy deals on the sidelines of the Winter Olympics in Beijing over the weekend, while Europe deals with low gas inventories. Beyond energy issues, the conflict between Russia and Ukraine is raising concerns in the wheat market.
....2. Russia, Ukraine wheat supply uncertainty brings competitors into spotlight
What's happening? Export prices of wheat originating from the Black Sea region, mainly Russia and Ukraine, have declined sharply over the past month as tensions prevail between the two countries. Russian and Ukrainian wheat export prices have shed 4%-5% over the past month. According to S&P Global Platts data, Russia 12.5% protein wheat export FOB prices settled at $313/mt Feb. 4, down $6 day on day and Ukrainian 11.5% protein wheat FOB export prices were at $308/mt, down $1 day on day. Ukraine exported 1.2 million mt in January, down from 1.4 million mt in December. For Russia exports stood at 2.6 million mt in January, down from 3.2 million mt in December.
What's next? With the pace of exports from the Black Sea region declining, demand for Australian premium quality wheat is expected to rise in the Middle East and Africa, the world's largest wheat buyers. For MY 2021-22, traders are expecting upbeat wheat exports from Australia and Argentina. This is significant for global wheat supplies, which are seen tightening due to poor output in North America and the uncertainty in the Black Sea region....
....MUCH MORE