Wheat prices increased due to the deterioration of the winter crops in the United States

- For information about the condition of crops in the United States, announced on Monday after the session, the American and European markets yesterday reacted speculative growth.

Declared by the Philippines and Pakistan tenders heat up wheat prices in the physical markets, especially in Russian. However, the low rate of the Euro and the high cost of freight from the ports of the Black sea, increase the competitiveness of European wheat, which is now the cheapest on the market.

After three days of wheat fall on US exchanges yesterday experienced a speculative adjustments due to deterioration of crops of winter wheat in 3 major States producing. If the Southern plains in the end of the week will be precipitation, the lack of rain in parts of the Northern plains within 7-10 days will strengthen dry phenomenon and the negative impact on wheat crops that begin to come out of dormancy.

May quotes of the U.S.:

• by 5.88 $/t to 244,80 $/t for SRW soft winter-wheat in Chicago,
• by 4.41 $/t to 233,41 $/t for solid winter HRW wheat in Kansas city,
• by 4.32 $/t to 237,08 $/t on a firm spring HRS wheat in Minneapolis.

French wheat yesterday rose in price after Chicago. However, traders expect the effects of doubling the export duty on Russian wheat – this will lead to a suspension or just slowing exports.

• the May futures for milling wheat on MATIF rose 1.75 €/t to 232 €/t or 280,39 $/t

On Pakistan announced a tender for the purchase of 300 thousand tons of milling wheat prices are 332,44 - 352,95 $/t C&F, and the most expensive is the Russian wheat, and the cheapest European. Therefore, the results of the tender can significantly affect prices in the physical markets.

currently, the price proposals of the European wheat are within 283-293 $/t FOB, and Russian for the week rose to 287-295 $/t FOB for delivery in March – April.

Group of private Philippine importers this week for the third time and try to hold a tender for the purchase of 75 thousand tons of feed and 70 thousand tons of milling wheat for delivery in April – June. Previous tenders were cancelled because of too high prices.

Asian buyers have acquired the necessary until the new harvest volumes, including thanks to strong sales to Australia, so now the market has shifted towards trade in wheat of the new harvest.

Prices for black sea wheat of the new harvest remain at the level of 240 $/MT FOB that fits 225-230 $/t in the port. Farmers are not in a hurry contractualise via the forwards, as the plan to increase the acreage of oilseeds cult instead of spring wheat (especially in Russia), which could lead to higher prices for wheat.