Precipitation in the United States and low demand has deployed the price of wheat down
After a speculative growth caused by the poor condition of winter crops, wheat prices fell yesterday on the precipitation forecasts in the coming days.
On expectations of increased demand in the European wheat after increasing from March 1 tariffs on Russian wheat March delivery in the EU last week rose to 250 €/t, which is 20 €/t higher than the cost of the may contracts. But Monday quotes fell by 5.3%.
- the March futures for milling wheat on MATIF fell yesterday by 7.75 €/t to 237,25 €/t or 285,8 $/t, and the may – 2.25 €/t to 229,75 €/t or 277,08 $/t
Jordan was planning to buy the tender of 120 thousand tons of wheat, but was unable to do it.
American wheat speculative stock exchange after the jump Tuesday Wednesday turned down under the pressure of the fall of the neighboring markets of soybeans and corn. The strengthening of the dollar affects the competitiveness of American grain, so experts have reduced the forecast of export sales of wheat from 250-700 kt to kt 100-500 Promised in the American plains areas of heavy rainfall also cooled the market.
Mais quotes USA Italy:
- by 3.77 $/t to 241,03 $/t for SRW soft winter-wheat in Chicago,
- at 3.40 $/t to 230,01 $/t for solid winter HRW wheat in Kansas city,
- 0.83 $/t to 236,26 $/t on a firm spring HRS wheat in Minneapolis.
In Ukraine traders offer for wheat 274-276 $/t or 8700-8750 UAH/t at the port, and processors – 8400-8600 UAH/t with delivery to the plant, which increases the quantity of proposals from the farmers.
As of 3 March, Ukraine exported of 13.77 million tons of wheat, which is 20% below last year's pace. According to the signed Memorandum, the rest of the season can be shipped further 3.7 million tons of wheat. Traders the main programs of the export of wheat from Ukraine designed before 1 may, after which competition will decrease and prices will drop, so producers need to step up sales.
