The supply of domestic grain is currently smaller because it is mainly purchased by purchasing companies and large farms that sell small batches of goods, the Grain and Feed Chamber reported on Monday. According to the chamber’s data, prices decreased due to imports from the Czech Republic, Slovakia and Germany.
- Grain trade has slowed down in recent days.
- The supply of grain is currently smaller because it is mainly purchased by purchasing companies and large farms that sell small batches of goods – informed the Grain and Feed Chamber in the report “Prices on the CBOT and MATIF exchanges” published on Monday.
- Grain is constantly purchased by exporters, both for delivery to ports and warehouses
According to the information provided by the chamber, the stored grain will be released on the market next season, although domestic processors are still willing to buy last year’s grain, wanting to stock up on raw material until the arrival of raw material from this year’s harvest.
According to IZ-P, the offered prices decreased compared to last week, due to, among others, influenced by the appearance of wheat from the Czech Republic, Slovakia and Germany on the market. Moreover, declines in grain prices were recorded on the European MATIF stock exchange.
Grain is still purchased by exporters, both for delivery to ports and warehouses located in the country, but recent drops in grain prices have clearly limited trade – it was pointed out.
In May this year, total grain exports by sea from the country amounted to over 833,000. tons compared to 740 thousand tons exported in April this year. and 882 thousand tons exported in May last year year. As noted in the IZ-P report, the export of wheat exported in May was very large – it amounted to over 641,000. tone. 90,000 were also deported. tons of corn.
Sale of wheat and corn to ports
However, in recent days, sales of wheat and corn to ports have been low, which – according to IZ-P – is most likely due to the reduction in grain purchase prices by exporters, which in turn was a consequence of last week’s price reduction on world stock exchanges. In June, wheat exports by sea will be much smaller than in May and may amount to approx. 300-350 thousand. tone. However, throughout the 2023/24 season, wheat exports will be record high and may exceed 5.8 million tons, and corn exports will approach 4 million tons.
Wheat prices on the CBOT exchange
Data presented by the chamber shows that wheat prices on the CBOT exchange in Chicago fell last week. This was due to forecasts predicting the highest wheat harvest in the United States in 5 years. This resulted in a decline in prices on the European MATIF stock exchange to the lowest level in 5 weeks. The reductions were also influenced by the expected rainfall in Ukraine and southern Russia, which may improve the difficult situation caused by the continuing drought in the Black Sea region.
At the beginning of June, Deputy Minister of Agriculture Michał Kołodziejczak informed the Sejm that, according to preliminary estimates, this year Poland will export a record amount of 14 million tons of grain. As he pointed out, contracts are increasing, “which shows that the situation is positive.”
As Kołodziejczak added, a total of approximately 60,000 were reported. applications for subsidies for grain sales, and the pool of funds amounting to PLN 2.1 billion will not be used in full. – This also shows that the situation on the grain market was not as tragic as it was said – said the deputy head of the ministry.
