Ukraine government stated (07/10/2011) that they will reduce the export of wheat and corn for almost 25-35 percent since the prices for both commodities are dropping down. Because all farmers are losing the profits, moreover, by selling for such low price they can`t cover their expenditures.
Europe Union gave permission to export 213,000 tonnes of wheat last week. In general EU exported 3,1 million tonnes this season, the last year they exported 5,3 million tonnes of wheat.
Kazakhstan didn`t change their plans to export 8-10 million tonnes of wheat. China bought 3million tonnes of wheat from Kazakhstan, moreover, in the Middle Kingdom the demand is growing and China wants to buy more an extra class wheat. Egypt is also interested in cheap wheat from Kazakhstan.
The Supply of wheat from Australia reached its maximum of last seven years. Australia has already exported almost 18 million tonnes of wheat. Demand for Australian wheat is high in Central Asia because cheap wheat substitutes American expansive corn.
Also, I would like to mention that large Russian, Kazakhstan and Europe companies (speculators) are buying wheat in large amount to store (then of course they will sell it for high price)
I think the price for wheat is going to fluctuate a little by decreasing in price soon but in the next coming month the price will increase.
hope it will help you guys to earn some money!!!
Hi Anuar,
Hope that I did not spell your name wrong…haha
From your blog, I actually learn a lot about the wheat market, especially the major export countries of wheat. I just have one question, how does the export in European countries affect the export in the U.S? What I mean is do European export countries and U.S commonly export wheats to one or more countries?
Thank you very much, and good luck for your biddings next week:)
Hello Chen!
you did spelling of my name right…as we know from courses of FRE501 US is one of the largest exporters of the wheat. The main point is that the high supply from EU is pushing world`s price for wheat down….i mean, nowadays, there is enough production of this crop, so they don`t need extra supply from US. consequentlly, price should go down and no metter US and EU are exporting to the same countrie or not. I hope i could explain it to you!