Higher yields of Russian wheat has led to falling prices for U.S. grain traded in Chicago, writes Le Figaro. According to the publication, Russia has signed a contract for the supply of large volumes of cheap wheat to Egypt, which is not allowed to raise prices for corn and soybeans in the United States.
ReutersВо Tuesday, December 3, the price of wheat traded in Chicago fell sharply against the background of major purchases of Russian grain from Egypt, according to Le Figaro. At the same time, corn prices fell only slightly, and soybeans continue to remain stable.
“After the purchase by Egypt 295 thousand tons of Russian wheat, it became obvious that Russia has enough wheat for sale at reasonably attractive prices,” — said in an interview with Mike Zuzolo from the consulting firm Global Commodity Analytics and Consulting. According to him, the market has recently “raised the price of American wheat,” citing the fact that “in Russia, perhaps a small crop“. Now, however, the expert noted, at the auction “had to reconsider the situation.” Says Zuzolo, such changes resulted in a decrease in maize prices, which also affected the new figures from Brazil. According to new data, there is corn planted more territory than had been anticipated originally. Besides, according to the weekly report of the Ministry of agriculture of the USA, by December 1, the corn crop in the country amounted to only 89%, while on average this time of year it is usually reached 98%. As for soybeans, the harvest is almost finished and is already showing 96%, writes Le Figaro. According to Susilo, it is surprising that its price has not changed despite news of Chinese-American negotiations. So, on Tuesday at a press conference in London before the opening of the NATO summit, Donald trump stated that the conclusion of a trade agreement with China, the largest importer of soybeans in the world, may take place after the presidential election in November 2020.