Precipitation forecasts lower wheat prices

Precipitation in the most arid regions of Europe and the forecasted rains in the South of Russia, increasing pressure on wheat prices. Weather forecasters promise that soon the rains will be favourable in the major agricultural regions of the United States and in Europe. But traders still concerned about dry conditions in the South American Plains and there is frost in the Midwestern United States.

the focus is now on the Stavropol and Krasnodar territories of Russia, where the moisture deficit reduced the yield potential of wheat.

the Worst situation in the Stavropol region, where in good condition are 31%, satisfactory – 40% poor – 19% of the planted of 2 million hectares of winter grain crops.

In the Krasnodar region the crops suffered from frost, blowing and lack of precipitation, which is from March to the first week of April, fell only 23% from the norm, and sometimes not there at all.

In the Rostov region last week rains, which fixed a critical situation caused by a deficiency of moisture, in consequence of which the crops began to wither. But the lack of rainfall in the next two weeks could again worsen the situation.

Recall that these regions are the main producers of export wheat in Russia.

In Ukraine, heavy rainfall took place only in the Western and Central regions, whereas in the South they were inadequate, with the result that part of winter crops may die. For the week precipitation is not expected, so the prospects for the future harvest will be impaired.

European stocks hardly reacted to rainfall in Ukraine and Russia, while the depreciation of the Euro was supported by quotes.

the

• September futures for milling wheat on MATIF rose by 0.5 €/t to 186,25 €/t or 201,18 $/t

the American stock exchange reacted to favorable weather forecasts in the US and Europe happy fall.

the July wheat futures in the U.S. fell:

the

to 2.39 $/t to 175,45 $/t for solid winter HRW wheat in Kansas city

0.92 $/t to 186,56 $/t on a firm spring HRS wheat in Minneapolis.

• 1.19 $/ton to 190,15 $/t for SRW soft winter-wheat in Chicago