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Wheat prices in key wholesale markets of the country remained unchanged as government procurement offset high supplies the government has procured 15 million tonne wheat for the 2017-18 (Apr-Mar) marketing season, up 12.1% from a year ago. Taking cues from spot markets, the most active May wheat contract on the National Commodity and Derivatives Exchange closed flat. The contract ended down 0.1% from the previous close. The most active July wheat contract on the CBOT was at $4.36 a bushel, up 0.4% from the previous close.

Turkey is a key country-importer of wheat bran from Ukraine. In the current season the country started gradually increasing the purchasing volumes. July-February of 2016/17 market year Turkey imported almost 352 thousand tonnes of Ukrainian wheat bran, an increase of 14% compared with the same period in 2015/16 market year (309.9 thousand tonnes), and up 4% compared with July-February of 2014/15 market year (337.8 thousand tonnes). Generally, in 2015/16 market year Ukraine supplied 475.8 thousand tonnes of wheat bran to Turkey, up 2% compared with 2014/15 market year (467.8 thousand tonnes). Turkey increased its share among foreign buyers of wheat bran from Ukraine. Thus, in 2014/15 market year the share of Turkey totaled 91% in the export structure, and in 2015/16 MY – 86%, but in the current market year the figures will grow to 98%.

U.S. grain futures edged higher on previous close, boosted partly by a weaker dollar, although the scope for a significant rebound in prices appeared to be capped by ample supplies. Chicago Board of Trade wheat for May delivery was up 0.5 percent at $4.21-1/4 a bushel at 1034 GMT. The most active contract had dipped to a low of $4.17-1/2 on Wednesday, the lowest since March 31.the market remained weighed by abundant global supplies although the prospect of lower crops in the Black Sea region helped to underpin prices. Wheat crop in Russia was forecast to fall by 9 percent from last year to 66 million tonnes while a decline in production was also anticipated in Ukraine. Lower exports from Russia and Ukraine are likely to help reduce the supply glut witnessed in global grains market. May milling wheat was down by one euro or 0.6 percent at 163.50 euros a tonne.

The government does not plan to hike import duty on wheat to 25% from the current 10%. There was no immediate need to raise the duty, as prices were above the minimum support price in most market. Procurement was progressing well and the harvest this year was also good. The government had on Mar 28, imposed 10% customs duty on import of wheat to prevent fall in prices following a bumper crop in the country this year.

Madhya Pradesh is likely to produce a record 22.5 millon tonne wheat in the crop year ending June due to higher acreage and better yield. The second largest producer of wheat is 22% higher on year and even above the previous estimate of 21.0 millon tonne pegged in January. Higher minimum support price has also encouraged farmers to grow more wheat this year. Adequate showers during monsoon led to better yields for and wheat this year.

Wheat prices in major wholesale markets across the country were stable despite high arrivals, as government procurement restricted any fall. Mill-quality wheat was being sold unchanged from previous close. A total of 20,000-30,000 bags (1bag=100kg) of wheat arrive in Punjab daily and arrivals are likely to double by the end of April. Wheat prices were unchanged in other major markets of Uttar Pradesh and Haryana. Prices of the grain fell by 20-30 rupees in Delhi market due to high arrivals from Punjab and Madhya Pradesh. As of Tuesday, the government had procured 11.9 million tonne wheat for the current marketing year that started April, 13.7% higher than in the year-ago period. The May wheat contract on the NCDEX ended at 1,650 rupees per 100 kg, up 0.4% from previous close.

Production of wheat in Bangladesh is expected to be higher in 2017-18 (May-Apr). Production of wheat is rising in the country by 2.3% to 1.3 millon tonne because of higher acreage, which may grow by 5,000 ha to 420,000 ha.

Severe cold came to Ukraine early this week. Due to an intrusion of arctic air, night air temperatures dropped to subzero values, even snowfalls occurred in the eastern regions. Because of the deterioration of weather conditions, planting of spring cereals in Ukraine slowed down. Early spring cereals and pulses had been sown on 2228 thosand hactare by April 18 – this is 3.5% less than at the same time last year. Planting of spring wheat lags slightly: 155 thousand hactare planted to date against 156 thousand hactare in 2016.

In 2016, Ukraine exported more than 5.5 millon tonne of wheat and 841 thousand tonnes of oilseeds to Egypt, or over 12% of the general Ukrainian exports of the reporting products. Ukraine has a very responsible approach to the phytosanitary condition of grains for exports. And Egypt is one of the main countries-importers of Ukrainian grains. Ukraine takes the leading positions in global grain exports, due to its geoclimatic conditions and active rates of agricultural development. In 2016, Ukraine managed to increase the exports of grains and oilseeds by over 7% compared with the previous year – to 44.4 millon tonne.