Wheat prices expected to revive demand

Good weather in major exporting countries contribute to the collection and improve the quality of wheat. The increased supply puts pressure on prices as buyers hold back purchases in anticipation of lower prices.

September futures French wheat ended the week lower, since the lost factors. Soft wheat in the country is collected on 90% of the areas compared to 81% last year. July was the hottest since 1959, so the background of the lack of precipitation crop condition of wheat during the week has declined by 1% to 56% (75% in 2019).

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• September futures milling wheat on MATIF fell by 0.25 €/t to 182,75 €/t or 215,25 $/t

the wheat Futures in Chicago after a small fall the previous completed Friday growth. The investors have been speculative purchases in anticipation of data on further movement of markets. Data collection soft winter and spring wheat indicate that the quality of the wheat continues to improve.

the September wheat futures in the U.S.:

the

0.92 $/t to 162,59 $/t for solid winter HRW wheat in Kansas city

0.37 $/t to 188,86 $/t on a firm spring HRS wheat in Minneapolis.

• 0.64 $/t to 195,20 $/t for SRW soft winter-wheat in Chicago

September futures on the black sea wheat in Chicago rose 0.5% to 211,5 $/t in December by 0.2% to 216,5 $/t while the prices of offers of Russian wheat protein 12,5% for deliveries in August-September are 208-212 $/MT FOB, while prices of demand and 205-206 $/t FOB.

As at 31 July in Russia, with 13.1 million ha or 44.1% of the area harvested 47.6 million tons of wheat with a yield of 3.64 t/ha (in 2019 at 3.61 t/ha). In the Central regions yields are much better than in the South.

wheat Exports from Russia rose to 1 mln t, and from the beginning of the season amounted to 2.3 million tonnes, which is 15% lower than in the previous year.

Ukraine for the week increased wheat exports tripled, to 778 thousand tons and since the beginning of the season exported 1.19 million tonnes, which is 10% higher than the corresponding figure 2019

the Purchase prices for Ukrainian milling wheat remain at the port level 192-194 $/t or 5400-5500 UAH/t. Traders are reluctant to raise prices due to low export demand due to high competition from Russian wheat.