Despite bearish factors in the market, wheat prices are soaring

After cancellation by China of import duties on 696 products from the United States, stock prices rose sharply yesterday. They were supported by a forecast reduction in wheat production in Australia and the locust invasion in Asia.

Traders have not yet taken into account the increase of the official forecast of wheat production in India to a record 106.2 million tons (compared to 103 million tons last year) and the decline of purchase prices for tender in Turkey.

Turkish State Agency TMO has purchased the tender of 250 thousand tons of milling (presumably Russian) wheat protein 13.5% and March delivery at a price 231,38 $/t CF, which by 13.65 $/t lower than at the previous auction.

the Market for wheat supports a weaker Euro, the resumption of growth of prices in Chicago and active export shipments from the ports of France, the majority of which is carried out in the direction of the countries of North Africa.

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• March futures for milling wheat on MATIF rose by 2 €/t to a three-week high 196 €/t 211,74 $/t

the lower forecast for wheat production in Australia to its lowest in 12 years caused the rapid increase in wheat prices in the United States. Traders hope for the intensification of wheat exports to Asia , which purchased mostly Australian grain. March wheat futures in Chicago showed the greatest 30.05.2019 with daily growth, rising by 4.5%.

wheat Exports from the U.S. for the week decreased by 12% to 502 thousand tons, but the news about a shipment of 286 thousand MT from the Pacific coast to Asia supported the market.

Since the beginning of the season, the United States exported 17.7 million tons of wheat, compared with 15.7 million tons at the same date last year, while USDA forecasts exports at the level of 27.2 million tons to reach a level the country until June 1 to ship weekly, 670 thousand MT of wheat, and it is unlikely the decline in global demand as a result of the epidemic coronavirus and intentions of India to subsidize exports of old crop wheat from the crowded state of the stocks.

March wheat futures in the U.S.:

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by 7.44 $/t to 178,48 $/t for solid winter HRW wheat in Kansas city

by 5.33 $/t to 198,41 $/t on a firm spring HRS wheat in Minneapolis.

• by 8.82 $/t to 208,24 $/t for SRW soft winter-wheat in Chicago