Analysis of global crop prices as of June 7: The price scissors effect

Published Jun 8, 2024

Tridge summary

The article provides an overview of the current situation and future trends in the Russian agricultural market, with a focus on wheat, barley, corn, sunflower, and soybean prices. It highlights a decrease in wheat export quotes, leading to an imbalance and rising prices within Russia, despite a discount for barley. The sunflower and soybean markets have not yet responded to new European Union import duties. The article also mentions a potential surge in barley prices due to expected increases in demand, a stable corn market with high domestic demand, and concerns about sunflower prices due to oil price fluctuations and weather conditions. Additionally, soybean prices are near record highs, and there are worries about potential yield decreases in the Far East due to excessive rainfall, although there is optimism about a new record soybean acreage in European Russia.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

At the end of the week, export quotes for wheat in deep-sea ports decreased for the first time in several weeks, but prices within the Russian Federation continued to rise, which led to an imbalance, or the “price scissors” effect. Barley maintains a discount to wheat, and due to this, it may increase in price in the coming weeks. The sunflower and soybean market has not yet responded to the introduction of protective import duties by the European Union, but after the start of harvesting the new crop, this factor may come into play. World market Factors leading to rising prices: Factors leading to lower prices: Russian market Factors leading to rising prices: Factors leading to lower prices: Summary: The wheat export market began a downward turn at the end of last week. At the end of the current period, exporter prices fell to 16,900 - 17,000 rubles per ton excluding VAT, ahead of the stock exchange index (17,070 rubles per ton as of the evening of June 6). In turn, farmers ...
Source: Zol
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