Demand from Iran supports prices for European wheat

Yesterday, the wheat exchange in the United States remained under speculative pressure as investors second consecutive day, recorded the net profit after the prices updated on Tuesday a six-month high. Whereas the quotations of the European wheat rose, supported by data on the reduction in sowing areas of winter wheat and growing demand from Iran.

Last week Iran has purchased 1 million tons of wheat presumably Russian and European (in particular German) production, and by the end of 2019/20 Mr plans to import 3 million tons of wheat. Suppliers are not a major international company, who fear to fall under US sanctions, and two middle Eastern and one Asian trainingof of the company. The buyer will probably be a public Corporation GTC, as private importers to buy wheat in the ports of the Caspian sea.

March delivery of French wheat after a 2-day fall has slightly increased amid robust exports, a prolonged strike by railway workers and a reduction in the acreage of winter wheat in the EU. In Germany, the winter wheat sown areas in 2020/21 year will decrease compared to the previous year by 8% to 2.84 million hectares.

In a December report, the European Commission forecast exports of soft wheat from the EU increased by 2 million tonnes to 28 million tonnes.

• March wheat futures on the MATIF rose yesterday by 0.75 €/t to 186 €/t or 206,75 $/t

Weekly export sales of US wheat were the highest in the season and made 868,6 kt, however, are unable to support the price of U.S. wheat.

March wheat futures in the U.S. fell:

0.64 $/t to 169,20 $/t for solid winter HRW wheat in Kansas city.

• at 1.10 $/t to 200,34 $/t for SRW soft winter-wheat in Chicago

Rose 1.01 $/t to 198,87 $/t hard spring HRS wheat in Minneapolis.

Yesterday, the Taiwan Association of flour millers (FMA) has acquired 104.6 thousand tons of U.S. hard and soft wheat with delivery in February-March at a price slightly lower than at the previous tender in November.

Japan at the weekly tender has contracted 148,405 million tons of wheat from USA, Canada and Australia.