Weather factors lowered the price of wheat in Europe

Yesterday the price of wheat expected the appearance of factors of support, however, the beginning of Ramadan reduces the demand for wheat, especially old crop.

Today, Saudi Arabia will hold a tender for the purchase of 655 thousand tons of wheat with a protein of 12.5% for delivery in July and August, which will determine new price targets for the market of wheat of the new harvest.

the May wheat futures in Paris fell yesterday under pressure from the negative impact on future crop water deficit in some regions of the EU and the black sea. Through the uncertain situation of agricultural producers in France begin to hinder the forward sale, despite the fact that prices are at an annual maximum.

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• the May futures for milling wheat on MATIF fell by 4 €/t to 199,25 €/t or 214,54 $/ton, and September - by 0.5 €/t to 191,25 €/t or 205,95 $/t

After two days of the speculative fall of the may wheat futures in Chicago rose, supported by hopes for intensification of the export of wheat from US due to lower production forecasts in Russia.

Thursday export sales of wheat amounted to only 155,2 thousand tons, which is far below expert expectations, however, actual export season reached 21.4 mln tons, which is 7% higher than last year's pace.

the Market supported the purchase of the Taiwanese company Flour Millers' Association (FMA) on the tender on April 23 220 tonnes of us milling wheat new crop with protein 9-14,5% on the price 234,15-245,79 $/t FOB.

the May wheat futures in the U.S.:

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0.64 $/t to 185,74 $/t on a firm spring HRS wheat in Minneapolis.

• 1.47 $/t to 200,98 $/t for SRW soft winter-wheat in Chicago

Fell 1.65 $/t to 178,39 $/MT of hard winter HRW wheat in Kansas city.

Prices for black sea wheat continues to fall because of lower demand and the number of proposals. Now the quota for grain exports is exhausted at 4.1 million tons, so free exports until the end of June are only 2.9 million tons.