The results of the tender in Egypt increased pressure on wheat prices
Yesterday the stock price of wheat of both the old and the new crop has declined under the pressure of the outcome of the Egyptian tender, where the state operator GASC purchased 345 thousand tons of wheat for delivery in August at a price almost 234 $/t FOB.
American wheat exchange traded mixed under the influence of data on the status of wheat in the United States, although worse than last year, but is gradually improving due to heavy rainfall.
the Rate sowing of spring wheat higher than last year, and in Idaho it is planted on 16% of the area (compared to 10% on average for 5 years), in South Dakota is 4% of the area (11%), in Washington, DC – 19% of the area (14%).
the May futures of winter wheat fell:
- 0.92 $/t to 226,15 $/t for SRW soft-wheat in Chicago,
- by 2.76 $/t to 204,11 $/t for solid HRW wheat in Kansas city.
price Increased by 1.29 $/t to 224,50 $/t solid spring HRS wheat in Minneapolis.
it Should be noted that in contrast to European prices, July quotes of American wheat do not differ from the may.
European Prices of wheat fell yesterday under pressure from the results of the tender in Egypt and slowing exports.
- the May futures for milling wheat on MATIF fell by 3.5 €/t to 205,75 €/t or 244,16 $/t, and the September – for 2 €/t to 194 €/t or 230,2 $/t
As of April 4 weekly exports of wheat from the EU (excluding the UK) amounted to only 174,8 thousand tons, the lowest weekly measure of the current season. Just season, the EU exported of 20.26 million tons of wheat, which is 23% below last year's pace. To reach the projected level of 27 million tonnes, you need each week to ship approximately 560 thousand tons of wheat, which is impossible to do, considering the high price of grain old crop in comparison with the new one.
Algerian Agency OAS today will hold a tender for the purchase of 50 thousand tons of milling wheat for delivery in may, which will give a new price targets for French wheat.
- On the stock exchange in Chicago July futures black sea wheat fell to 227,25 $/t, and the December – to 236,75 $/t
bid Prices of Russian wheat protein 12.5%, and delivery may remain at 255 $/t FOB, while for deliveries in June, they are 235-240 $/t FOB.
bid Prices of the Argentine wheat with protein 11.5% of fell to 245-250 $/MT FOB Up River for supplies in April and 246 $/t for may deliveries.
increase the number of procurement tenders due to lower wheat prices will stabilize quotes on the prices of the new harvest.