Esteban Moskariello, commercial director of Díaz Riganti Cereals SA, estimates that world prices for important agricultural products, especially for Wheat, have dropped significantly over the past week, Clarin reports.
Note that following the results of April 28 trading, wheat quotes fell $15,7 per tonne to $227,7 per tonne in a week.
As the expert explains, the negotiations on the extension of the Black Sea Grain Agreement and the import ban on Ukrainian agricultural products introduced by the countries of Eastern Europe have not led to an active increase in world prices for wheat, as well as Corn and Soybean contributed. On the other hand, the reduction in demand, the improvement in weather conditions and the increase in supply have reduced prices: Wheat to a minimum of 21 months, corn to a minimum of 8 months, soy to a minimum of 1 month.
E. Moskariello also noted that the new season for wheat is about to begin, with prospects for a new harvest still positive - in Europe, Canada and the United States USA fairly high grain production is forecast. In addition, the Russian Federation is strengthening its position in the wheat market on a FOB basis, and the impossibility of active exports from Ukraine also puts some pressure on prices.
Separately, the analyst noted that the outlook for Argentina's wheat harvest is still unclear, but grain production is expected to resume at 19,5 million tons.
Source: APKinform (Ukraine)