Internationally Wheat Trade Hovers at 2-Month High

Wheat market

CHICAGO:  Internationally Wheat Trade rose above the $8.3 per bushel mark in mid-September, reaching levels not seen since July as expectations of strong supply further waned.

Concerns of a sudden halt in exports from Ukraine continued to support higher prices in world wheat markets, as President Putin criticized the UN-brokered deal with that established a safe corridor for grain trade through the Black Sea.

Putin stated that Russia has been “cheated” with the deal, vowing to revise the contract’s terms that could hamper supply to major importers of Internatinally Wheat. In the meantime.

Internationally World supply forecasts were revised higher by 3.6 million to 1.1 billion bushels of wheat by WASDE, as trade increases in production from Russia and Ukraine offset the decline in beginning stocks elsewhere.

Also, the results from the recent winter harvest in Russia point to record highs for both areas harvested and yields, according to the Russian Ministry of Agriculture.

While Pakistan  Given the final offer by Russia to supply the wheat at $399.50 per metric ton under the government-to-government deal.

It was observed in the ECC meeting that there was a declining trend in the price of wheat which may further reduce in the coming days, according to a statement issued by the finance ministry.

“The ECC decided that the Russian side may be offered the price of $390 and the offer may be cancelled if they (Russians) do not accept the offer,” it added.

Some members of the ECC were against the decision to reject the Russian offer because of the relatively thin position of the wheat stocks.

The government’s proposed price of $390 per ton is $9.5 or 2.4% less than the final Russian offer.

This would have translated into a saving of $1.4 million at the total offered quantity of 120,000 metric tons. The validity period to accept the Russian offer was Friday 6pm, Moscow time.

Pakistan had decided to import three million metric tons of wheat internationally  this year to meet its consumption and strategic reserves requirements for trade