For three consecutive weeks in late August and early September 2024, wheat remained the primary crop traded on the domestic exchange. At the same time, the overall prices of cereals, soybeans and sunflowers recorded an increase, which is good news for agricultural producers.
According to the report of the Novi Sad Product Exchange, the interest of buyers towards the end of August was mostly focused on higher quality wheat. Exchange contracts were concluded in the price range from 20.2 to 22.5 dinars per kilogram excluding VAT, depending on the quality of the wheat and the location of delivery. This higher demand for quality wheat contributed to the statistical growth of the average price, which in the observed period is higher by 3.57% compared to the previous one.
Wheat accounted for as much as 62% of the total weekly turnover on the stock market, while an increased demand for soybeans was also recorded, despite the reduced supply. In contrast, the demand for corn was weak, so corn accounted for only 6% of the total turnover.
Wheat in Europe and where the traffic moves
Experts explain that due to the difference between the offered and requested prices, only three commodity exchange contracts were concluded during the highlighted week, which indicates limited corn trading. However, good news is coming from the European Union, where the price of wheat is returning to a level above 200 euros per ton.
For deliveries in December, the price is 215 euros per ton, which confirms earlier forecasts by experts that a significant increase in prices will come before the end of the year. This rise in the price of wheat is attributed to a poor harvest in major producers such as France and Germany, but also to the weakening of the euro against the US dollar.
Ukraine, as the largest supplier to the European market, significantly increased the export of cereals and pulses. During the first two months of the new season (July–August 2024), Ukraine exported 6.74 million tons. This amount is 62.2% higher than last year. Out of that, 3.37 million tons of grain were placed in Europe. Experts state that there was an increase of 1.6 million tons compared to 2023.
Also, the export of corn from Ukraine reached 2.2 million tons, which is 325,000 tons more than the previous year. Ukraine is currently the largest exporter of wheat to the European Union. Experts point out that in the last six months there have been no objections to the quality of Ukrainian grain. The new crop of wheat is already in the silos, and the quality is rated as good.
These changes in the market of wheat and other cereals represent a challenge and an opportunity for agricultural producers. At the same time, it is expected that further flows on the market will depend on geopolitical and economic factors, as well as on weather conditions in the coming months.
Source: Politics
Source: boljazemlja.com
