Weather factors continue to support wheat exchange prices

Speculators continue to warm up wheat prices on US stock exchanges amid cold and dry weather, while European wheat is getting cheaper due to profit-taking by traders.

Tomorrow, Egypt's GASC will hold a tender for the purchase of flour-milling wheat of any origin with delivery in August 2021, which will become an indicator of prices for wheat of the new crop and show whether buyers are willing to pay a high price for it.

May soft wheat futures in Chicago rose 11% for the week, showing the largest weekly increase since 2015, while durum wheat in Kansas City rose 12.5%, the largest increase since the 2008 global food crisis.

May futures rose:

• by 2 2.11 / ton to H 247.37/ton for hard winter HRW wheat in Kansas City,
• by 3 3.67/ton to.264.00 / ton for hard spring HRS wheat in Minneapolis.    

Soft winter SRW wheat in Chicago remained at 2 260.97/ton.

Today's USDA report on the state of crops will determine new price trends in the wheat market.

• July Black Sea wheat futures on the Chicago Stock Exchange fell on Friday by 4 4/ton to.258/ton, and August – by. 2/ton to. 261/ton after a sharp increase the day before.

In the physical market of Black Sea wheat, prices for May deliveries increased to 2 265-270/ton FOB, but there are almost no buyers.

A decrease in precipitation in Russia this week will accelerate the sowing of spring wheat, the rate of which is significantly lower than last year.

According to the state agency FranceAgriMer, as of April 19, 85% of soft wheat crops (86% a week ago and 58% a year ago) and 77% of durum wheat crops (80% a week ago and 63% a year ago) were in good or excellent condition in France. This confirms that the recent frosts did not damage the crops.

• May wheat flour futures on the MATIF Exchange fell on Friday by 2.25 €/ton to 236.25 €/ton or 286.09 €/ton, and September – by 1.5 €/ton to 219.25 € /ton or 265.5 € /ton.

Wheat exports from Ukraine for the week decreased by 71% to 66 thousand tons, and in general in the season reached 14.8 million tons, which is 21% lower than last year's pace. Traders raised purchase prices in the port to 7500-7600 UAH/ton or 2 235-238/ton for deliveries in April – May, and to 2 225-230/ton for deliveries in July – August.

Weather conditions in Ukraine contribute to the development of winter and spring wheat crops, the delay in sowing in Russia is not yet critical, so the main attention of traders is still focused on the United States.