Increased pressure fundamentals launched down the wheat markets

Increased pressure such fundamental factors as the better weather in the Northern hemisphere and decrease in demand for wheat, yesterday launched down the wheat exchange in USA and Europe.

Pessimism market provided a clear reference to the Chinese importers on the dependence of the prospects for further exports of French wheat to China from the ability to improve grain quality and to strengthen the phytosanitary control. Organized by the group for the promotion of exports France Export Cereales (FEC) the seminar, the representative COFCO International said that in 2020, France exported to China record 2.5 million tons of wheat, but now it has grow to export the wheat is high and the middle class, to meet the needs and promote the development of the Chinese market.

• the May futures for milling wheat on the Paris MATIF fell by 2.5 €/t to 218,5 €/t or 258,24 $/t

After adjustments speculative market for U.S. wheat went down under pressure from the strengthening of the dollar and favorable weather in the rural regions of the American plains, where rainfall improve the condition of winter wheat.

May futures declined:

• by 3.67 $/t to 229.55 $/t for SRW soft winter-wheat in Chicago,
• 2.11 $/t to 211,73 $/t for solid winter HRW wheat in Kansas city,
• 1.19 $/t to 230,38 $/t on a firm spring HRS wheat in Minneapolis.

Large importers refuse to buy expensive wheat, contributing to lower prices.

South Korean recycler MFG acquired 66 thousand tons of feed wheat shipment 12серпня – 10 September at a price of 269,65 $/t CFR.

TFMA Thai Agency refused to buy wheat shipped from may to December due to the high bid prices, which accounted for 273-280,5 $/t CFR.

Philippine importers at yesterday's tender refused to buy wheat, as the lowest bid price was 300 $/t C&F that, in the opinion of the organizers of the auction exceed the market value.

the bid Prices for Russian wheat with the beginning of the week decreased by 5-7 $/t to 266-270 $/t FOB, while the Argentine wheat, they are 255-260 $/t FOB.

Seasonal increase in supply increases the competition between exporters for buyers that allows importers to play at lower prices.