At the very beginning of the week, the price rise of all agricultural products was noticed. Total turnover was 4.175 tons, which financial value was 1.545.923,40 €. In the middle of the week, due to notice about a possible temporary export ban of corn and wheat, the demand on the domestic market has completely stopped. On Thursday, the Government of the Republic of Serbia adopted the Decree on the temporary ban on the export of basic agricultural products – wheat grains, wheat flour, corn and groats and sunflower oil. The escalation of the conflict in Ukraine has led to serious turbulence in global markets as well.
Until Wednesday, at the corn market was noticed the upward trend. Contracts were concluded from 289,00 to 290,70 €/t, or from 297,50 to 304,30 €/t at the CPT parity. The weighted price for this week was 290,11 €/t. Compared to the previous week, this cereal price rose by 6,08%. After the Decree on the temporary export ban, there was a complete calming of the market, i.e. the absence of demand. In February, 161.629 tons of corn were exported and the total export in the current economic year amounted to 731.158 tons, which indicates that corn is one of the most important export products from Serbia. More than half of the annual corn crop is exported as a market surplus. In the following period, where uncertainty is present, it remains for us to closely monitor the development of this situation.
Wheat was the most traded commodity on the commodity-exchange market. Depending on the quality, contracts were concluded from 297,50 to 306,00 €/t. The weighted price was 302,09 €/t, which is an increase of 4,69%. Given the situation on the international market, it is not surprising that demand and prices in our country have increased. As with corn, no purchase contract has been concluded since Wednesday. During February, 57.389 tons of wheat were exported, and the total export for 2021/22 is 724.544 tons. The top buyer of wheat during February was Italy with 28.257 tons of this commodity. In Europe, volatility is still present in the markets, which imposes great caution when taking positions.
Unlike cereals, the soybean market has been active thought the past week. At parity FCA, contracts were concluded from 654,50 to 663,00 €/t, with a clear upward tendency. The contract on parity CPT was concluded at 667,25 €/t. The supply of larger quantities of this oilseed was missing. The weighted price was 656,20 €/t. Compared to the data from the previous week, soybean prices rose by 1,62%. Apart from the domestic market, prices also strengthened on the foreign market.
At the beginning of the week, the sunflower meal, 33% protein, was traded at a price level of 314,50 €/t, while at the end of the week the realization was at 340,00 €/t, with delivery during March.
The main concern for farmers stays the price increase of fertilizers. On Produktna berza, the contract for UREA, Kutina, package 500/1 was concluded at a price of 900,00 €/t. Contracts for UREA, Russia, were concluded at a price level of 920,00 €/t. KAN, Hungary, package 25/1 was realized at 700,00 €/t.
Feed barley was traded at 280,50 €/t.
Verica Popov, broker