Risk On Sentiment Dominates

Agriculture

CBOT wheat futures have been trading up 1% in early morning trade today after a 3% jump on Friday on fears that Russia may curb wheat exports from the country to keep domestic prices under control. Media reports suggest that Russia is considering plans to impose export taxes on wheat alongside the earlier proposed export quota as domestic supplies of wheat tighten up and local wheat prices remain elevated. Russia makes up nearly 20% of global wheat exports, and curbs on Russian exports could tighten the overseas market considerably. Further helping wheat prices is the USDA’s WASDE report released on Thursday last week which lowered the estimates for global ending stocks of wheat. The agency now estimates that wheat stocks at the end of 2020/21 will be around 316.5mt compared to its earlier estimate of 320.5mt mainly due to stronger demand prospects from China.

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