In this context, the July position of flour fell US$19.29 and ended the day with an adjustment of US$457.23 per ton. Oil also fell accordingly, ending the round with a decrease of US$36.38 for the July contract, whose adjustment was US$1,717.81 per ton.
“The downward movement, initiated and exacerbated by the sales of investment funds in the grain market due to speculation with grains held in Ukraine, had as other fundamentals the calm in Chinese demand for US soybeans despite the improvement in the competitiveness that marks the appreciation of the real against the dollar in recent weeks”, detailed the consultant and broker in its daily report.
The news that Russia would manage to release shipments in the midst of the Russian invasion is not a minor fact at all, since it is estimated that Ukraine currently has a grain stock of around 20 million tons, mostly corn and wheat. That is why, if a bridge could be achieved via Turkey, it would ensure the supply of cereals to part of Europe and various countries in Africa.
That is why corn ended the Chicago wheel with a drop of US$9.35 per ton to close at US$296.64. In this particular case, the advance of the second corn harvest in Brazil also had a downward influence –it contributes with about 75% of the total cereal supply in that country–, which in a few weeks will begin to dump more grain on the commercial circuit.
Finally, wheat was the hardest hit with a drop of more than US$20 per ton to end the round at US$399.59. This happens just when the sowing of the cereal is just beginning in Argentina and an estimated foreign exchange income of around US$6.5 billion is projected if barley shipments are also counted. The truth is that with the balance volumes established by the Government to ensure the supply of the domestic market, exporters have already declared sales of more than 10 million tons and producers were able to capture high values.
In short, the movements in the grain market fully impact the availability of dollars in Argentina, but the truth is that the development of the trend still remains to be seen and in a maximum scenario, agriculture would contribute the record of more than US$ s52,000 million and a minimum of around US$40,000 million.
Source: Ambito
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