The global grain market faced the new trade realities this season. Natalja Skuratovic, key clients service manager with PETKUS, told about global prospects of demand and pricing as well as development on the main influencing markets within KAZAKHSTAN GRAIN CONFERENCE 2020: ONLINE EDITION organized by APK-Inform on November 26.
“We see now that wheat prices reached the high level of 2014 on the world market. The futures on CBOT and Euronext as well as the prices in Black Sea region are growing for several months, despite high global production this year. High demand for wheat is the main supporting factor. This demand arises from the pandemic, as buyers want to be sure that they will be able to cover their inner needs in case of any new quarantine restrictions. Thus, they are ready to buy wheat even at high prices”, - the expert explained.
Moreover, N.Skuratovic commented on the price situation on corn market. On the one hand, high global production weights on the prices. On the other hand, the strong demand from key importers, particularly China, supports them.
“Usually, Chinese corn stocks are an important factor. However, the size of these stocks is never known. Currently, the prices of corn on Dalian Commodity Exchange are very high. Thus, there is a significant factor of support. It can be corn stocks that are declining”, - the expert said adding that the lower corn stocks are observed when the livestock segment is recovering in China.
N.Skuratovic added that the consumption of grains in China would remain one of the leading factors of price formation on the global markets of wheat and corn. Weather conditions in the key producing countries, particularly, La-Nina influence on the South American production will determine the prices as well.