The increased demand raises the price of wheat

2018-12-18 12:06:38
Machine translation
The increased demand raises the price of wheat

wheat Prices continue to rise due to the reduction of offers of Russian wheat and concern about the quality of Argentine grain. After the physical market and rising stock prices.

 

In Argentina, the wheat is gathered only 52% of the area due to heavy precipitation, which can degrade grain quality. Since the beginning of November, the Argentine wheat with protein of 12.5% went up by 10-15%.

 

Despite the delay of the harvesting, the export of Argentinean wheat can in December to exceed 2 million tonnes, which will be the highest in the past 30 years.

 

In this period of the year Argentina and Australia were usually the main suppliers of wheat to the world market, so the contraction of production in these countries has led to higher prices.

 

the background of the problems in Argentina, the U.S. last week increased wheat exports by 52% to 682,162 thousand tons. at the same time slowed down the pace of exports of black sea wheat. For the week, Russia reduced wheat exports by 6% to 700 thousand tons, and Ukraine – 16% up to 114 thousand tons of Rumors about the possible restriction of Russian wheat exports after a meeting of traders with representatives of the Ministry of Agriculture of the Russian Federation continue to heat up prices for Russian grain.

 

Traders hope for further price increases and increased exports of U.S. wheat.

 

March wheat quotations on the stock exchanges of the USA grew:

1.38 $/t to 191,80 $/t for solid winter HRW wheat in Kansas city

0.46 $/t to 215,04 $/t on a firm spring HRS wheat in Minneapolis.

  • 1.93 $/t to 196,67 $/t for SRW soft winter-wheat in Chicago

 

According to the monitoring service of the EU, in France 82% of crops are in good or excellent condition, although a year ago the figure was 95%, indicating a lack of readiness of crops for the winter and supports the growth of prices for wheat.

 

 

  • wheat Futures in Paris rose by 0.75 €/t to 207,5 €/t or 235,63 $/t

 

during the week, the EU exported only 129 thousand MT of wheat since the beginning of the season of 7.45 million tonnes, which is 25% lower than the level of the previous mg, and much less exported by Russia in the current season of 21.8 million tons.

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