2022 #7 (21.02.-25.02.)

First forward contract for wheat crop 2022 and bullish price trend marked last week on the domestic market. Corn recorded the price high in this marketing year. The situation in Ukraine had a strong impact on markets. It is really hard to predict the consequences of Russian action on the markets, knowing that ports such as Mariupol and Odessa are becoming unusable due to the bombing. In that context, Black Sea export has been suspended resulting in rising prices for all products. The total turnover through Produktna berza amounted to 6.166 tons of commodities, while financial value amounted to 1.830.461,74 €.

A record-high price was concluded on the corn market. At the beginning of the week, this grain was traded at 229,56 €/t, and at the end of the week the price of 249,11 €/t was registered for prompt delivery. Contracts at the parity CPT Danube ports were concluded at 238,91 €/t, with delivery during March. The weighted price for this week was 241,46 €/t, which is an increase of 5,62%. Apart from the domestic one, this price trend was completely correlated with the movements on the foreign market as well. Having in mind this price growth, taking into account the uncertainty of the situation, as well as the great demand for this grain, it remains for us to closely monitor the next period and price changes.

Unlike the previous period, when passivity was noted on the wheat market, at the end of the week, due to movements on the world political scene, there was an increased demand, and thus an increase in prices. Contracts were concluded from 255,06 to 263,57 €/t, with delivery by April 30. The first forward contract for wheat crop 2022 at parity FCA was realized at 238,06 €/t. The traded quantity was 500 tons, with the delivery from July 8 to 30. Given that the price is above all expectations, it is now up to the farmers to decide whether to sell part of the future crop.

Soybeans had an upward trend after last week’s absence from trading on the commodity exchange market. During the week, the price ranged in a wide price range from 637,66 to 663,17 €/t. It was traded exclusively with the calculation of quality, and the realization of 663,17 €/t was with the delivery in March/April. On the last day of this week, there was an impression that the supply is higher than the demand. The weighted price was 645,91 €/t. Compared to the previous data, soybean prices rose by 1,91%.

AN (Kutina), package 25/1, was sold at the price of 740,00 €/t, while the Russian AN 900/1, was concluded at the price of 715,00 €/t (at parity CPT). Contracts for UREA were concluded from 760,00 €/t to 786,00 €/t. A drop in prices was recorded for nitrogen fertilizers.

 

Verica Popov, broker

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