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Russia attacked the city of Odessa, in Ukraine, using a fleet of 22 drones aiming to shake a strategic city for the Ukrainian economy, as it is home to the largest agricultural transport port in the attacked country. Despite being neutralized by Ukraine's air defense, the drones caused fires at the port and damaged a grain terminal, and infrastructure damage was reported.
The attack came amid negotiations to maintain the Black Sea Grain Corridor agreement, which is scheduled to expire next week. The director of Agricultural Research Consultancy SovEcon, Andreu Sizov, commented that “the wheat market decided to ignore the attack on Odessa”.
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On his Twitter account, Sizov stated that “wheat is on the rise, but far from last week's peaks. I don’t agree 100% with the market at the moment: it’s too early to shrug.”
RUSSIA CAN EXPORT RECORD VOLUME
Also according to consultancy SovEcon, Russia could export a record volume of wheat in July. Shipments could be between 3.7 million and 4.1 million tons, compared to an average of 2.8 million tons for the month. Sizov, said in a bulletin that favorable market conditions and stocks at record levels contribute to the good pace of exports.
According to SovEcon, the greater competitiveness of Russian wheat has been stimulating demand. Russian cereal with 12.5% of protein is currently trading at US$232.50 a tonne, while French wheat is at US$252.00/t on Euronext Paris. At the beginning of June, wheat stocks on Russian farms totaled 15.6 million tonnes, compared to 9.7 million tonnes a year ago, the consultancy said, citing Rosstat estimates.
Source: Leonardo Gottems | agrolink
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