Speculative growth of prices for wheat
on Thursday, traders have stepped up purchases on the stock exchanges after sharp decline in prices during the week to lows for the year. Support speculators in Europe were the results of a tender in Egypt, which was dominated by European wheat, and in the US the main factor was data USDA forecast about the reduction of the area under wheat in the new season.
Additional support for the U.S. wheat market has been the growth of quotations of corn and soybeans on the background information about the alleged promise of China in addition to buy American agricultural products to $ 30 billion., that will be fixed in the new trade deal.
the March quotations of milling wheat in the Paris exchange MATIF rose by €2,25 to 195.00 € / ton or 221,08 $ / t
According to the USDA forecast of the entire sowing area of wheat in the United States in the new season will be 47 million acres, 800 thousand acres less than Last year's 47.8 million acres, also below the average estimate of analysts at the level of 47.2 million acres.
March quotes of the American wheat have risen:
- soft wheat SRW in Chicago by $2.11 to 178,75 $/ton
- hard wheat HRW in Kansas city for $1.93 and to 167,27 $/ton
- hard wheat HRS in Minneapolis at $3.31 to 204,93 $/ton
Prices in the cash wheat market in Russia continues to decline as traders trying to find buyers for wheat delivery in March, April, it is ready to cut prices in anticipation of rising crop of the new year and falling prices on European and American wheat. Export growth continues to slow and as of 19 February, the total wheat exports from Russia amounted to 28.59 million tons, which is 6% higher than last year.
Thai importers this week bought 2 cargos of 50 thousand tons of wheat (probably Ukrainian) for about 215 $/t C&F for delivery in July and August, suggesting prices under the CRT port about 170-175$/t for new crop.
