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.
In Australia, uncertainty remains over the new crop due to weather conditions, which is holding back producer sales, slowing export trade and supporting prices. In addition, the Grain Industry Association of Western Australia (GIWA) lowered production estimates for Western Australia due to continued dry conditions in most agricultural regions.
This week, importers’ demand for phosphates has decreased in Brazil. Only customers applying fertilizer for soybeans may be interested in purchasing MAP with shipments in August and early September. The next wave of purchases is expected for the second application (for corn) starting in February 2024.
The global urea market has featured the approval by the Indian IPL to purchase 1.76 million t of urea at $396-399/t C&F for shipments to the east and west coasts of India by September 26. About 1.1 million t of this volume will be shipped from China, 350,000-400,000 t from the Middle East
Sunflower oil prices are declining due to weak demand amid Russian attacks on Danube ports. Offers of oil for August-September shipments are voiced at $935/t CIF Mersin, while bids do not exceed $920/t on the same basis. As a result, sales have been made at $930/t CIF Mersin.
Quotes for U.S.corn dropped amid improved crop ratings. According to the USDA, as of August 13, 59% of corn crops were in good/excellent state against 57% a week earlier and last year.