Active tenders continue to support high prices for wheat

2020-10-15 12:01:55
Machine translation
Active tenders continue to support high prices for wheat

Data about the high sowing rate of winter wheat and forecast of precipitation in Russia and the United States have been unable to reassure the markets of wheat, which continues to raise prices amid strong imports from importers.

more and more signals that the price for black sea wheat lose the European for the high prices, and the increase in the supply of Argentine and Australian in November-December competition on the world market will increase, and until the end of November will understand the situation with the condition of winter crops, which also can flatten prices.

 

this week, the State Agency Algeria in the course of the tender purchased 510 thousand tonnes of European wheat at a price the average 263,5$/t C&F for delivery in October-November.

 

Today the market is awaiting the decision of the trading Corporation of Pakistan (TCP) on the tender from 14 October to purchase 300 thousand tons of milling wheat because the offer price was at around 284-296 $/t C&F vs 278,50 $/t C&F. at which at the previous tender on 5 October was purchased 330 thousand tons.

 

the Ministry of industry and trade of Jordan at the tender 14 Oct purchased 60 thousand tons of Romanian wheat for delivery in the 1st half of February 2021г at a price of 272 $/t C&F, while the price of the offer of Russian wheat was at 288 $/t C&F.

 

animal feed producers Association of Thailand (TFMA) has rejected all offers made for the tender for the purchase of 70 thousand tons of feed wheat optional origin because the proposed rates were an average of 270 $/t C&F, while waiting for max of $250/MT C&F.

 

Turkish news Agency TMO also announced a tender for the purchase of 175 thousand tons of wheat which will be held on October 22.

 

Dry weather in major exporting countries continues to cause concern about the future crop, but, on the other hand, sowing rate is much higher than last year, and the forecast is rain for the next week speeds up North and could lead to an increase in sowing areas on the back of high wheat prices and high profitability.

 

According to the U.S. Department of agriculture winter wheat as of October 11 planted on 68% of areas, compared with 61% a year ago and 61% on average for 5 years.

 

In Russia as of 13 October sown already 83,6%, or 16 million hectares of the projected area of winter crops, although the shortage of moisture in the soil is preserved, but forecast rain this week increases hopes for a good harvest.

 

the Last precipitation in Ukraine last week have accelerated the North and last week planted 1.2 million hectares, and as of 13 October sowing of winter wheat by 63% of the forecast, or 3.8 million hectares.

the Market for U.S. wheat ended environment of a small but friendly growth. Drivers of trading in the wheat area of the United States has not changed. As before - it is a strong soil moisture deficit in Russia, Ukraine and in the States themselves.

 

December quotes of the American wheat have risen:

the

  • soft Wheat SRW in Chicago by $ 01,01 to 219,26 $ / ton
  • the
  • hard Wheat HRW in Kansas city rose by $1,47 to 196,67 $ / ton
  • the
  • hard Wheat HRS in Minneapolis by $ 0,64 to 200,62 $ / ton.

 

December futures on European wheat on the stock exchange in Paris yesterday, rose again to 0.75 E/t to Have 203,5/t or 239,05$/t, which remains at the highest level in 5 years. Due to active purchases of French wheat from China and the French and Baltic wheat to Algeria.

 

the Sowing of wheat in Europe is progressing well especially after heavy rainfall during the previous month, also in the future may exert pressure on the quotes.

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