Wheat dominates the market!
Corn
Responding to the recent rise in wheat, Corn prices at the beginning of the week were also corrected by slight increases. At the same time, the re-rise in crude oil prices also created a turning-point in the prices of animal feed ingredients at the beginning of the week, along with the news that the US was preparing for a new crop that created a resonance phenomenon in the market. The market is quite lively.
By the middle of the week, corn prices had gone down instead of the increase in wheat prices. In addition, this weekend the news that the Poultry Association of Pakistan proposed to prohibit corn to limit the increase in domestic corn prices at this country had made many importers worried.
However, many parties believe that this decision is not feasible because there are still many shortcomings.
Wheat
Faced with an prohibited export wheat at the end of last week, the price of CBOT wheat spiked earlier this week and led to a series of other agricultural products raising. India’s sudden cessation of wheat exports has made trading companies concerned about the tight global supply situation for this commodity.
Faced with concerns about a shortage wheat’s cargo, Asian importers have to look for new sources to replace them. A few importers ventured to buy more supplies from Russia, despite problems with Western sanctions on the country’s banks due to high insurance charges.
By the middle of the week, wheat prices remained at a high level due to the news that grain exports from the Black Sea were interrupted due to the war between Russia and Ukraine. But, the Indian government has issued an order to allow shipments of wheat pending customs clearance to be allowed to be exported, which also partly alleviated the concerns of importers for the pending contracts.
However, on May 19, wheat prices dropped sharply after 2 consecutive profit-taking sessions at the beginning of the week. In addition, the United Nations report on efforts to overcome Ukraine’s grain exports and the hope of Russian supply were also among the factors that pushed wheat prices down at the end of the week.
Also on May 20, Indonesian President Joko Widodo announced that he would lift the prohibit on palm oil exports from May 23 due to improved supply. However, the country will impose a Domestic Market obligation on palm oil to ensure that 10 million tones are stored domestically.
