Grinders with 40 cents per kilo are counted by the millers for quality durum wheat
At around 40 cents per kilo, market participants set the base price for the new durum wheat crop, taking into account the huge shortage of first quality durum wheat on a global scale, but also the advantage of Greek production being harvested first.
Although it is too early for such estimates, the fact that experienced domestic durum wheat market players are assessing market balances in the new trading period – in this way, also reveals the magnitude of the disruption in the value chain.
The quantities of first quality durum wheat, with protein over 14% are extremely hard to find, with most market participants estimating that in this category the de-escalation from the high of the price range will be slow.
Next month, the first new crop of durum wheat will start to be available from Canada, which, however, will be limited to category number 3, which corresponds to the so-called “four” of Greek production.
All this is important because in Greece, where an increase of 10% is expected, it is expected that several of the Flies, domestic and neighboring, will turn to ensure the first quantities of the new year. People in the market report that the ratio of stocks to use shows significant shortcomings. Most Yards are secured until the middle of spring 2022 / early summer, which indicates that they will come out thirsty on the threshing floor for raw material.
Some estimate that the market will not open the new trading season with a large deviation from the levels at which the current season will close. If there are clear signs of stabilization of the market at current levels, 46 to 48 minutes in the producer, then the threshing floor is expected to sit somewhere close to 40 minutes.
Another catalyst for keeping prices high is the drought that has hit irreparably on Spanish production and that of North African countries, which will claim larger shares of next year ‘s world imports.
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