Wheat: The wheat market closed with strong gains. Turmoil in Russia is the main reason. Various reports appear to confirm that exporters are having extreme difficulty getting export certificates in a timely manner. It's being suggested that Turkey, Egypt, Armenia and India are being singled out for referential treatment, and exports to those destinations will get pushed through, but everybody else can go and whistle. This appears to have brought trade in Russian wheat to a virtual standstill very quickly.
Exporters don't want to sell, for fear of getting caught having to pay expensive demurrage bills as vessels sit at the quayside waiting for customs clearance. That means that also neither are they a buyer on the domestic market all of a sudden. That leaves the government's intervention fund program looking a more attractive proposition than it has up until now. There are reports of Argentine wheat now trading into African and Middle Eastern homes, where buyers are shying away from even considering Russian wheat.
There should also be a pick up in interest for EU and US wheat too. Note too the absence of large Russian wheat buyer Saudi Arabia from the unofficial list of approved homes. Is that just a coincidence, or a poke in the eye for the country seen by many as being responsible for the collapse in crude oil prices that is causing Russia so much stress at the moment? Mar 15 CBOT Wheat closed at $6.48 1/2, up 25 1/4 cents; Mar 15 KCBT Wheat closed at $6.81 1/2, up 26 3/4 cents; Mar 15 MGEX Wheat closed at $6.59 3/4, up 25 1/2 cents.
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