Precipitation in the United States and Russia continue to lower wheat prices

improving the condition of winter wheat crops in the U.S., EU, Russia and Ukraine will intensify pressure on the stock price of the wheat.

Precipitation is held in the arid regions of the United States and Russia, continue to lower quotes, but the drop has accelerated under pressure from the collapse in oil prices and stocks in the United States due to concerns about the economic repercussions of the second wave of the pandemic.

Investors have spent massively speculative sale, locking in profits after the rapid growth of a significant number of long and short positions. Since the beginning of the week, the December wheat futures in Chicago fell by 8.82 $/t

December futures in the U.S. fell:

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to 2.20 $/t to 199,61 $/t for solid winter HRW wheat in Kansas city

3.49 $/t to 202,82 $/t on a firm spring HRS wheat in Minneapolis.

• by 2.57 $/ton to 223,67 $/t for SRW soft winter-wheat in Chicago

French wheat after Chicago fell to 2-week low under pressure precipitation in the United States and Russia and strengthening of quarantine restrictions in many countries. According to Euronext, a week number long positions of wheat increased by 63486 contracts short – 50617 contracts, resulting in net long position rose to the highest since April, 2018 the level at which the exchange began to publish this statistic. This confirms the speculative component of price growth in recent weeks.

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• December futures for milling wheat on MATIF fell yesterday for 1.75 €/t to 204 €/t or 239,76 $/t

the Decline in stock prices lowered the price for black sea wheat, which has long been more expensive in Europe, so that soon competition between them will increase, particularly in the markets of North Africa and the middle East, amid increased sales of Australian wheat.

December futures for black sea wheat on the market in the US fell 2.6% to $250/ton, in March – 2% to 253 $/t

In Ukraine, purchasing prices for wheat yesterday following the corn market has fallen to 240-245 $/t or 8150-8350 UAH/t, and today may continue to fall because the purchase prices exceed the bid prices, which remain at 245 $/MT FOB and correspond to the level of the prices at which ready to sell wheat to European sellers. And lower prices for European wheat will increase competition.