Increased demand supports prices for Black Sea wheat

A sharp rise in the price of wheat on the US and European stock exchanges has increased demand for Black Sea wheat, which remains the cheapest on the world market.

Wheat exports from Russia for the week increased by 57% to 1.1 million tons, and in general in the season reached 2.8 million tons, which is still 25% lower than last year's pace.

According to SovEcon and Icarus agencies, the supply prices of Russian wheat for the week increased by 1 10-12/ton to F 267-268/ton FOB. Following this, purchase prices for food wheat in Ukraine increased to 2 250/t CPT, which is equivalent to 2 265/t FOB.

Improved weather conditions in eastern Russia have increased forecasts for the spring wheat harvest. As of August 6, 51.8 million tons of wheat with a yield of 3.4 t/ha were threshed in Russia from 15.2 million hectares or 54% of the area.

Wheat quotes on world stock exchanges began the week lower against the background of high harvesting rates in the United States and increased harvesting in Europe.

Thanks to the hot weather, as of August 8, winter wheat was harvested in 95% of the area in the United States, and spring wheat – by 38%, which is 17% ahead of the average 5-year rate. The number of spring wheat crops in good or excellent condition for the week increased by 1% to 11% compared to 69% last year.

According to the USDA, the amount of wheat inspected for export for the week increased by 50% to 605.8 thousand tons, which exceeded traders ' expectations.

September US futures fell:

• by 2 2.85 / ton to Чикаго 261.2/ton for soft winter SRW wheat in Chicago,
• by 1 1.56 / ton to H 257.6/ton for hard winter HRW wheat in Kansas City,
• by 2 2.76/ton to.333.6 / ton for hard spring HRS wheat in Minneapolis.

After Friday's rapid growth, August Black Sea wheat futures fell by вчора 1.75/ton to.268.75/ton yesterday, while December futures rose by another. 1.5/ton to. 296/ton.

In Europe, dry weather has accelerated wheat harvesting, which increases pressure on prices. However, they are supported by the depreciation of the euro against the dollar.

• On MATIF in Paris, September wheat flour futures fell 0.25 €/t to 229.25 €/t or 2 269/t yesterday, while December futures rose 0.25 €/t to 232.25 €/t or 2 272.6/t.

This week, the wheat market will remain at rest in anticipation of an updated USDA balance sheet, and only after its publication on Thursday is a price adjustment possible.