As a result of trading on August 29 on the CBOT exchange, wheat quotations fell to $209.3 (-$6.8) per tonne, continuing the downward price trend of the previous trading reports Apkinform.
The main pressure on prices was exerted by the rather low demand of importers for American grain, especially against the background of the supply of cheap wheat from Russia.
In addition, the decline in prices was facilitated by the information that Ukraine does not expect a significant reduction in the area under wheat in the current year. Thus, in general, the supply of wheat in the Black Sea region remains sufficient, which contributes to lower prices on the world market.
On Euronext, wheat futures on August 29 also fell to 225.25 euros/t against 228.75 euros/t in the previous trading. The decline in prices was driven by the supply of cheaper Russian grain.
According to the market operators, despite the rumors that the minimum price of wheat in Russia on FOB basis for export is 260 USD/t, and at international tenders – 270 USD/t, the actual sale of Russian grain was carried out at the price of about 240 USD/t.
In addition, it is worth noting that wheat exports from the EU in 2023/24 MY, according to the European Commission, decreased by 30% year-on-year.