Dry weather in the U.S. and Russia supports wheat prices at a high level
the prolonged absence of rains in the United States and Russia increases the pressure on world wheat prices, even though the "bear" the October USDA report.
This week in Russia will be little precipitation, which will reduce the stress for winter crops, but they are insufficient. In regions of winter wheat production in the United States precipitation this week will not.
SovEcon Experts predict that drought will lose 10-15% of the sowing areas of winter wheat, mainly in the Central regions of Russia.
Producers, the drought hindered sales, which leads to an increase in the price of wheat amid strong export demand. According to IKAR, Russian wheat protein 12.5%, and for October shipment for the week has risen in price 6-8 $/t to 245 $/MT FOB Black sea ports.
As of 12 October in Russia, with 28.7 million hectares, or 97.6% of the areas harvested 87 million tons of wheat with a yield of 3.03 t/ha.
Yesterday on the stock exchange in Chicago has been adjusting prices, due to speculative purchases by investors in the data about dry weather in some regions of the USA and Russia. Whereas hard wheat in Kansas city and Minneapolis became cheaper under the pressure of "bearish" USDA report.
December futures in the US had the following dynamics:
the
fell by 1.84 $/t to 194,92 $/MT of hard winter HRW wheat in Kansas city
fell 0.37 $/t to 199,42 $/t hard spring HRS wheat in Minneapolis.
- increased by 0.18 $/t to 218,35 $/ton SRW soft winter-wheat in Chicago
the Algerian Agency OAS holds a tender for the purchase of 50 thousand tons of wheat for delivery in November. Change the quality requirements are allowed to participate in the auction of Ukrainian and Russian wheat, and the price for black sea wheat is now higher than in the European.
the EU Countries (with the UK) for a week 650,4 exported thousand tons of wheat, in particular:
the
France – 193,4 thousand tons,
Latvia - 137,9 thousand tons,
Lithuania – 154,4 thousand tons.
- Poland – 130 kt,
Export of soft wheat in 2020/21 MG as of 11 October was 5.73 million tonnes, which is 29% below the corresponding period last year. Share of Lithuania and Latvia in the export of wheat amounts to 1,916 million MT or 33.4 percent.
On physical markets and bid prices of European milling wheat remain at 235-245 $/MT FOB, while Ukrainian and Russian went up to 245-250 $/t FOB.
In Ukraine, purchasing prices for wheat at the port, after reaching on Friday a maximum of 240 $/ton or 8000 UAH/ton yesterday fell to 232-235 $/t or 7800-7900 UAH/t
Precipitation replenished the soil moisture reserves and accelerated planting of winter wheat. The rains, which will be held during the week will allow you to obtain a good harvest and improve the prospects of the next harvest.
