World wheat market in expectation of Argentine supply

In the current season, the key suppliers of Black Sea wheat – Russia and Ukraine – continue enjoying high export prices and strong global demand for their commodity.

In view of a decrease in the 2018/19 world wheat crop and rather unfavorable conditions for planting winter crops for the 2019 harvest, some grain growers decide to keep part of their crop in stock and wait for a price hike in the latter half of the season.

However, when choosing their sales strategy in the current season, market participants should take into consideration Argentina’s coming to the world market, as this country may curb expected growth of world prices, reports UkrAgroConsult. Local farmers have started harvesting new-crop wheat, and sales from Argentina can be expected to surge as soon as November-December.

In view of good quality and competitive prices, Argentine wheat may continue conquering the markets which are traditionally dominated by Russia and Ukraine – Indonesia, Vietnam, Bangladesh, UkrAgroConsult analyst note.

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