Monday, November 29

Wheat: Harvest Advances with High Yields and Record Prices in Chicago


With regard exclusively to the core area, from the Rosario Stock Exchange in its latest report they explain: “In mid-October there were rains that cut off the heat wave that was hitting the crop in the middle of a critical period and raised the estimate wheat field in almost 500,000 tons. The estimate goes up one more notch in mid-November: with an extra 150,000 tons, the estimated production goes to 6.8 million tons for the core region. The doubts about the effects of heat had generated a lot of fear due to the possible damages, but they are beginning to clear up due to the good signs of the harvest ”.

The variable that is making the difference in yields is the technology applied in fertilization, they coincide in pointing out in the region: “the differences lie in the nitrogen units.” Despite the political and economic uncertainty, Argentine producers bet on a great wheat campaign in a context of high demand and sustained international prices.

Last Friday, wheat closed at $ 302.30, thus closing a week with a positive sign and also reaching its highest value in nine years. “After a start to the downturn, the international wheat market refocused on a demand that continues to be active, with a significant number of tenders throughout the week, and against the chance that suppliers such as Russia will see more restrictions for their exports ”, they explain from the consulting firm Granar.

Trucks

In this way, the good progress in the harvest and the higher production are reflected in the entry of trucks with wheat to the port terminals of the region. In the last three weeks (that is, since the end of October to date) approximately 19,690 units have entered the Up-River ports, more than doubling the number of trucks entered in the same period of the previous year (7,468) and a record for the same period in previous years (the best previous brand was held in the 2017/18 campaign, with 17,904 trucks). In addition, of that total, approximately 11,520 did so in the last seven days, which accounts for an acceleration in the arrival of wheat to the region’s terminals, as detailed in a survey by the Rosario entity.

Another aspect that stands out from the wheat of the new crop is the level of internal commercialization of the cereal. To date, 10.2 million tons of grain have been sold, the highest volume in history for the time of year. Discriminating purchases between the export sector and the milling sector, however, a very dissimilar picture is observed. The first has already purchased 9.98 million tons, a historical record, while the second has only purchased 245,000 tons, the lowest volume for the time of year since the 2015/16 cycle.



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