After a prolonged fall on wheat exchanges there was a speculative price adjustment

Yesterday, a speculative adjustment of wheat prices took place on world stock exchanges, supported by a sharp growth in the corn market, although fundamental factors in the form of a significant volume of offers in the new season and a decline in export rates continue to put pressure on quotes.

July futures for soft pashnitsa in Chicago for the first time in 9 trading sessions, during which they lost 2 21.58/ton, turned to the top, although thanks to speculators who massively closed short positions and made purchases. Prices are fueled by concerns about the fate of spring wheat crops in the Northern American Plains, where temperatures are expected to rise next week without precipitation.

Export sales of wheat of the 2020 harvest from the United States for the week fell 7.1 times to 29.5 thousand tons, and in general in the season reached 25.678 million tons, which is 4.1% lower than last year's pace. Wheat exports for the week amounted to a fairly high 529.3 thousand tons, and in general in the season reached 24.1 million tons, and obviously by June 1 it will not be possible to reach the projected USDA 26.26 million tons.

Forward sales of new crop wheat for the week decreased by 24.8% to 373.8 thousand tons, and in general already amounted to 3.951 million tons, which is 30.2% higher than the same indicator of the previous season.

July US futures rose:

• by 1 10.20 / ton to Чикаго 248.47/ton for soft winter SRW wheat in Chicago,
• by 1 10.10 / ton to H 230.10/ton for hard winter HRW wheat in Kansas City,
• by 1 13.41/ton to.263.54 / ton for hard spring HRS wheat in Minneapolis.

French wheat also rose sharply on Thursday. But unlike Chicago, not because of speculators, but because of increased demand from large importers. The market was supported by the procurement tenders announced by Saudi Arabia and Tunisia, but Tunisia canceled the tender due to high offer prices, the lowest of which was 2 279.82/ton C&F.

• September wheat flour futures for MATIF rose 6 € / T to 212 €/t or 2 258.52/t.

The European Commission on Thursday increased the forecast for the soft wheat harvest in the EU-27 countries from 124.8 to 126.2 million tons, which is 6.5% higher than in 2020. at the same time, the forecast for soft wheat exports in 2021/22 MG was left at 30 million tons, which is 3 million tons higher than the forecast for the current season. It is expected that the final reserves of soft wheat in the new season will decrease from 11.4 to 10.8 million tons due to an increase in domestic consumption in the EU, especially feed grain.

After falling at the beginning of the Week yesterday on the Chicago Stock Exchange, July Black Sea wheat futures rose by 8 8/ton to.259/ton, and December – by 7 7.5/ton to. 264/ton.