2021 #44 (08.11.-12.11.)

The stable price level of wheat, falling prices of corn and soybean were actual on the market of primary agricultural products at Produktna berza. Total turnover was 3.566 tons (-24,14%), while financial value was 1.111.863,35 €.

Wheat was the most traded commodity, with a total quantity of 2.800 tons. At the beginning of the week, the Government of the Republic of Serbia, at the suggestion of the Ministry of Trade, has adopted the Decree on obligatory production and trade of T-500 flour bread, which limits the retail price of this type of bread to a maximum 0,39 € in the next six months, with possible extensions. An intervention is planned from commodity reserves of 30.000 tons of flour. This decision had a calming effect on the price in the short term. Contracts at FCA parity were concluded at a price of 263,65 €/t with the clause “free stock” until 31st December, or 273,00 €/t at CPT parity with delivery from 15th to 31st January 2022. According to the USDA report, the world’s final stocks of this cereal have been adjusted to lower than last month’s estimate (from 276,5 million tons to 275,8 million tons). In this context, wheat on Euronext recorded growth, which also affected the price on the domestic market. Demand was more intense, and at the end of the week, the contract was concluded at a price level of 267,90 €/t with a takeover by 31st December. The weighted price was 263,90 €/t.

Unlike the previous week, where buying corn was more intense, a decreased activity of commodity exchange participants was marked this week. Only two contracts were concluded for prompt delivery at a price of 223,67 €/t, which is at the same time the weighted price. At the end of the week, supplies at the same price level, with the clause “free stock”, did not reply to the demand, which suggests the fall of the price. Corn with increased moisture up to 18% was traded at a price of 202,41 €/t.

Soybean continued with a bearish trend. Absent demand still causes the price fall, which has been noticed in the last month. Contracts at FCA parity were concluded in price range from 612,34 to 614,89 €/t, while the contract at CPT parity was realized at a price of 615,74 €/t. Mostly it was traded with quality calculation. The weighted price was 613,11 €/t. In comparison with the last data, the price is lower by 3,02%.

 

Verica Popov, broker

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