Grain Market

A large transaction for the sale of food grain was concluded on the Eurasian Trading System exchange on Friday, December 4. A lot of third-class wheat with a volume of 5 thousand tons was put up for auction. The price per ton was KZT 103 thousand (including VAT). The transaction was closed for the entire volume; the buyer paid KZT 515 million.

Global Grain Market Overview

The first week of December was marked by a significant drop in wheat prices in the United States and Europe. Wheat contracts in the United States fell five percent far below six dollars a bushel. The decline in European prices was more moderate, but also significant – more than three percent in France and Britain.

In London, wheat prices fell by 3.2%, in Paris by 3.3%, and in Chicago by 5%.

From November 27 to December 4, wheat contracts fell from 6.06 to 5.755 $/bushel, or 5% ($211.4 per ton) on the Chicago stock exchange (SWOT).

In Europe, wheat contracts fell from 193.5 to 187.25 pounds per ton, or 3.2% ($252.2) on the LIFFE exchange in London from November 27 to December 4. On the MATIF exchange, December wheat contracts fell from 211.5 to 204.5 euros per ton, or 3.3% ($248.8), and March contracts fell from 209.75 to 202.75 euros per ton, or 3.3% ($246.7) from November 27 to December 4.

On November 26, a new report from the International Grain Council (IGC) was released with negative adjustments to global grain production, consumption and final balances in the 2020-21 season. The production forecast decreased by 7 million tons from 2,226 to 2,219 million tons, and the consumption forecast by 4 million tons from 2,223 to 2,221 million tons. The final reserves of the season were reduced by 3 million tons from 619 to 616 million tons. But the forecast for world grain trade was increased by 6 million tons from 403 to 409 million tons.