The expected reduction in wheat prices is accelerating

2020-04-02 12:03:48
Machine translation
The expected reduction in wheat prices is accelerating

After Russia refused to restrict wheat exports, the recent speculative growth of prices on the exchanges and physical markets have been replaced by the expected decline.

 

Wheat exchange in the United States tumbled yesterday after the stock markets on the background of a sharp strengthening of the dollar. May futures on soft wheat in Chicago showed the largest daily decline for the last 7.5 months.

 

the May wheat futures in the U.S. fell:

the

by 6.61 $/t to 174,53 $/t for solid winter HRW wheat in Kansas city

by 5.42 $/t to 192,72 $/t on a firm spring HRS wheat in Minneapolis.

  • on of 6.80 $/t to 202,18 $/t for SRW soft winter-wheat in Chicago

 

the Recent increase in prices has reduced demand from importers. Egyptian GASC announced and immediately canceled without explanation a tender to buy at least 55-60 thousand tons of soft milling wheat for delivery on may 5-20. Apparently, not to pay more on the background of falling wheat prices on U.S. exchanges 3.5%.

 

at the same time, Algeria, March 31, acquired 250 thousand tons of milling wheat, have announced a new tender for delivery in the period 1-15 and 16-30 June, which supported the prices of European wheat.

 

Additional factor of pressure on prices is Russia, where according to Rosstat, wheat stocks as of March 1 totaled 16,655 million tonnes, 1.1% higher than last year and confirms the possibility of exporting at least 7 million tonnes of wheat until the end of the season.

 

bid Prices of Russian wheat protein 12,5% increased to 226-230 $/t FOB, although demand remains low.

 

French wheat yesterday became cheaper pressure fall in Chicago, but the quotes kept the good pace of exports and declared Algeria a new tender.

 

the May futures for milling wheat on MATIF fell by 2.75 €/t to a weekly minimum of 193,5 €/t or 211,72 $/t

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