Wheat, rape and corn on Euronext rose in price by 4.8-5.9% on rumors of a possible restriction of exports from the Russia

During the last month, on the Euronext exchange, quotations for wheat and corn fell by 15%, and for rape – by more than 30% against the background of active selling of futures by traders. Taking profits from falling prices, traders began to buy back previously sold contracts at the end of the week, which led to a slight increase in quotations. However, information about Russia’s intentions to limit the export of certain crops led to a speculative jump in prices by 4.8-5.9%.

The Vedomosti agency reported that at a meeting at the Ministry of Agriculture, the possibility of temporarily stopping the export of sunflower oil and wheat was discussed due to a sharp drop in export prices over the past 1.5 weeks by 10-15%, in particular for sunflower oil – from $1,100 to $800/t. and for sunflower – from $600 to $395/t.

Against this background, quotations rose on the Euronext exchange on Friday:

• May rapeseed futures – up 4.8% to €457/t or $492/t, almost reversing the previous week’s decline,
• May corn futures – by 4.5% to €253.75/t or $273/t (-3% for the week),
• May wheat futures – up 5.8% to €259.25/t or $279/t (-2.4% for the week).

Russia is a major world exporter of wheat, the production of which in 2022/23 MR exceeded 100 million tons, and exports are forecast at the level of 46 million tons, of which 32.3 million tons have already been shipped. The export of sunflower oil is estimated at 4.3 million tons, of which more than 1.5 million tons have already been shipped.

Also, the Russian Federation may extend the ban on the export of fertilizers until November in order to support the domestic market, – said Minister of Agriculture D. Patrushev.

Importers are expected to step up purchases this week after a long decline in prices to multi-year lows.

Tags: rapeseed, restrictions, Russia, corn, prices, wheat