Heat wave in the US warms up stock prices for wheat

2021-06-07 12:36:25
Machine translation
Heat wave in the US warms up stock prices for wheat

The increase in drought and heat on the American Plains, which will last for another week, significantly affects wheat prices, especially spring wheat, the condition of which was already bad, and after a week of heat it will worsen even more, as will be known from the weekly report of the USDA.

 

Export sales of old-crop wheat from the United States due to the cancellation of previously announced sales turned out to be negative and amounted to minus 33 thousand tons, and the total export of the season reached 24.35 million tons, or 91% of the USDA forecast. Actual exports for the week amounted to 243 thousand tons, and in general in the season – 24.3 million tons, which almost corresponds to last year's level, but is significantly lower than the USDA forecast of 26.26 million tons. export sales of wheat of the new crop for the week amounted to 398.3 thousand tons, and in general all reached 4.3 million tons, which is 23% higher than in 2020 on this date.

 

July US futures rose:

  • by 4 4.23 / ton to Чикаго 262.70/ton for soft winter SRW wheat in Chicago,
  • by 4 4.50 / ton to H 233.87/ton for hard winter HRW wheat in Kansas City,
  • by 1 12.95/ton to.298.63 / ton for hard spring HRS wheat in Minneapolis.

 

European wheat fell in price on Friday, as the factor of increasing drought on spring wheat crops in the United States was offset by forecasts of favorable weather in the EU countries and the strengthening of the euro.

 

  • September wheat flour futures for MATIF fell 0.75 €/t to 214.75 €/t or 2 261.36 / t.

 

The Iranian state Trading Corporation (GTC) purchased at a tender on June 2 195 thousand tons (which is three times the planned volume) of Russian flour wheat for delivery in June – July at a price of F 260/ton FOB.

 

Prices for Black Sea wheat under the pressure of a significant supply of the old crop remain at the level of 2 260-265/ton FOB.

 

Wheat exports from Russia slowed in May, but intensified in June after the reduction of export duties. For the period of June 9-15, the Ministry of Agriculture of Russia, based on the average price for 7 days of $241.78/ton, set the duty at 2 29.4/ton, which is 1 1.3/ton higher than the previous week's rate. Recall that until June 1, the duty was 50 €/ton or 61 € /ton.

 

Over the past two weeks, Ukraine exported 410 thousand tons of wheat, and in general in the season – 16 million tons, which is 20% lower than last year's pace. By the end of the season, another 1.5 million tons remain free for export.

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