A sharp drop in prices for black sea wheat continues

Low demand amid a significant amount of supply continues to lower prices for black sea wheat both new and old crop. Despite the decline in stock prices, speculators searching for new factors of support, but the weather conditions improve and will continue to put pressure on prices.

In Russia as of March 1 stocks of wheat producers were 10,082 million tonnes, which is 22.5% more than last year and 17.2% of the average 5-year average. At the same time, stocks of wheat farmers have major regions of the North Caucasus is much lower, and the producers of the Central Chernozemya and the Volga region – higher than last year.

On the physical market bid prices Ukrainian and Russian wheat fell to 278-280 $/t FOB, and a new crop – up to 240-245 $/t FOB.

• On the stock exchange in Chicago April futures black sea wheat fell 2.4% to 269 $/t and the July – 1.6% to 234 $/t

the May futures for soft wheat in Chicago yesterday updated its monthly low pressure news about the improvement of winter wheat and MSG message to Russia about the possible lifting of export restrictions, which is nothing confirmed. However, at the end of the auction speculators brought the quotes in the "green zone".

the May futures rose:

• 0.74 $/t to 237,73 $/t for SRW soft winter-wheat in Chicago,
• 0.55 $/t to 223,49 $/t for solid winter HRW wheat in Kansas city.

Fell 0.46 $/t to 234,33 $/t solid spring HRS wheat in Minneapolis.

French wheat yesterday also updated month low on the news about the improvement of crops in the United States and a drop in export demand. Traders do not believe in the possibility of Russia's cancellation of restrictions on the export of grain.

• the May futures for milling wheat on MATIF fell by €1/t to 222 €/t or 264,1 $/t

Association of farmers ' cooperatives Germany predicts that in 2021, the production of wheat in the country will rise compared to the previous year by 1% to 22.34 million tonnes.

the Market awaits the outcome of the tender in Pakistan for the purchase of 300 thousand tons of wheat, the price proposals, which was made for export in April 323,97 $/t CFR in June - 330 $/t CFR, July-August – 285,97-298,75 $/t CFR.

In Ukraine exporters have reduced the price of wheat at the port to 8000-8300 UAH/t or 255-260 $/t, followed by the processors lowered the price to 8000-8100 UAH/t with delivery to the mill.

the decline of demand prices for corn and wheat in Asia to 285-290 $/t CFR, prices for Australian wheat fell to 275-285 $/t FOB for may delivery.