Grain Highlights 22.08.2024

Over 2 million hectares of wheat, corn, rapeseed, and sunseed in Romania have been affected by drought. About 40% of the crops have been destroyed. This is the fourth year in the last five with significant drought damage, with only 2021 being an exception.

- In the first two months of the 2024/25 season, Russia is expected to export 8.2 million tons of wheat (compared to 9.8 million a year earlier), according to a forecast by SovEcon. As of August 20, 2024, export contracts for 3.9 million tons of wheat (compared to 5.8 million last year) have been signed.

- Over 2 million hectares of wheat, corn, rapeseed, and sunseed in Romania have been affected by drought. About 40% of the crops have been destroyed. This is the fourth year in the last five with significant drought damage, with only 2021 being an exception. The government has allocated 1.5 billion euros to support farmers, or 200 euros per hectare.

- Millers in India are urging the authorities to start selling wheat from the state reserves. The goal is to stop the rise in domestic wheat prices, which are now at a nine-month high of 334 USD/ton. Between June 2023 and March 2024, authorities sold a record 10 million tons of wheat from the reserves. As of August 1, 2024, stocks in state warehouses were 26.8 million tons, down 4.4% from the previous year. Some millers are suggesting that the import tax on wheat, currently set at 40%, should be abolished.

- Japan has purchased 81,440 tons of wheat from the USA and Canada, with delivery scheduled for October.

- Tunisia has purchased 75,000 tons of soft wheat at prices ranging from 243 to 246 USD/ton, with delivery scheduled for September-October. The wheat is most likely of Black Sea origin.