Prices for iron ore of literally all major origins have risen owing to, firstly, scant inflow of the raw material to the sales markets and, secondly, strong demand from China where the principal producers show high pace of steel production this week.
Quotes for imported thermal coal continue to grow in Western Europe (for the third week in a row) amid uncertainty on the gas market. The start of direct LNG deliveries to Germany reduces the country’s dependence on coal imports, but so far this is not reflected in coal prices in ARA ports.
Quotes for U.S. soybeans dropped amid improved crop ratings. According to the USDA, as of August 13, the state of 59% of the crops was assessed as good/excellent (54% a week earlier and 58% last year).
Thermal coal prices keep going up on the West European market, although trade remains dull in the region. Not a single fresh deal has been reported this week.
Iron ore prices have started rising again amid expectations of the upcoming steel output splash in China as well as due to small iron ore stockpiles at local ports
Export quotes for Ukrainian grain dropped significantly amid instability of shipments by sea and attacks by Russia. On the night of August 16, Russian armed forces launched another drone attack on the ports of Izmail and Reni, affecting warehouses and grain storage facilities.
The EU grain market showed a decline in prices for most grains amid pressure from high competition (players noted a huge volume of Russian wheat offered at more competitive prices) and generally favorable weather conditions for the development of crops and field work in the main producing countries.
Prices for Russian grains inched up amid stable importers’ demand and lively export sales. Despite the upturn, quotes remain competitive and attractive.
Export quotes for Kazakh-origin wheat increased slightly despite weakening national currency. However, trade remains limited, and players fear another price decline due to the inflow of smuggled Russian wheat.
In Brazil, trade is gradually perking up in the corn segment, which has a corresponding impact on prices. Although consumers still do not hurry to buy corn, hoping for lower prices.