Improving the condition of winter crops in a short time will lead to lower prices for wheat

Such fundamental factors as significant reserves, reducing demand and improving the condition of winter crops, increasing pressure on wheat stock quotes.

in Recent years, one of the main factors supporting prices was drought in the United States, where they grow winter wheat. However, the rainfall in recent weeks has significantly expanded the inventory of soil moisture and improved condition of crops.

According to the USDA, the number of winter wheat crop in good or excellent condition, in the state of Kansas for the week increased by 2% to 38% in Oklahoma by 4% to 57%, co 6% to 25% in Texas remained at the level of 27%.

Due to heavy rainfall the number of fields that are experiencing a shortage of soil moisture for the week decreased from 47% to 24%.

information about the condition of crops were released after the auction, so during the session, traders are mostly speculative purchases conducted on increased export sales.

Inspectors from the USDA for export shipments checked 683,5 thousand tons of wheat, which is 41% higher than the corresponding figure of the previous week and 46% last year. Total wheat exports in the season amounted to 19.3 million tonnes, which is 2% less than last year's pace.

the May futures rose:

• by 2.39 $/t to 236,99 $/t for SRW soft winter-wheat in Chicago,
• 1.19 $/t to 222,94 $/t for solid winter HRW wheat in Kansas city,
• 1.93 $/t to 234,79 $/t on a firm spring HRS wheat in Minneapolis.

the European monitoring Agency (MARS) in the March report noted that despite the difficult winter weather conditions of winter crops meet spring in good condition. For most countries, and crop yield forecasts significantly greater than both last year and average 5-year indicators, primarily due to poor harvests in recent years.

forecast the yield of wheat in the EU increased to 5.89 t/ha, compared with 5.7 t/ha in the previous season of 5.69 t/ha on average for 5 years.

• the May futures for milling wheat on MATIF fell by 0.25 €/t to 223 €/t or 266,15 $/t and the September rose 1 €/t to 200,25 €/t or 239 $/t

heavy rainfall that last weeks were held in the southern regions of Russia, the Stavropol and Krasnodar Krai, improved the condition of winter crops. Thanks to the warm weather of the winter shoots obtained in almost all planted areas, although in the fall of crops were under the threat of death.

bid Prices of Russian wheat fell to 3-5 $/t to 280 $/MT FOB, while the bid price drop after the reduction in the price of wheat to European 275-279 $/t FOB.