Wheat prices under pressure of export demand

Yesterday the exchange, wheat prices fell under pressure data on the pace of grain exports from major producing countries.

• December futures for milling wheat on the Paris stock exchange has updated a three-week low and has fallen by €1/t to 200,25 €/t or 229,57 $/t

last week the EU exported only reach 115.3 thousand tons of wheat, and from the beginning of the season of 5.02 million tons, which is 23% less than the previous year.

However, the depreciation of the Euro to 1,145 $/Is declared Algeria procurement tender will support prices for wheat this week.

the Market for U.S. wheat has also started the week with a fall. Wheat exports dropped by 16% to 384 thousand tons, which is still twice higher than in the same period of the previous my. Total wheat exports in the current season made up 8.21 million tons, which is 24% lower than the level of last year on the same date.

the strengthening of the dollar and high export demand for Russian wheat worsen export prospects for U.S. wheat.

the December wheat futures on US exchanges declined:

3.12 $/t to 186,56 $/t for solid winter HRW wheat in Kansas city

1.19 $/ton to 215,13 $/t on a firm spring HRS wheat in Minneapolis.

• 2.48 $/t to 186,65 $/t for SRW soft winter-wheat in Chicago

Russia reduces rates of exports and over the last week has shipped 747 thousand tons of wheat, and from the beginning of the season of 15.17 million tonnes, which is 35% higher than the corresponding period last year.

Syrian grain Agency Hoboob bought for the tender of 200 thousand MT of Russian wheat at a price of 255 $/t C&F, which is by 30.5 $/t above the purchase price at the previous auction on September 17.

This further supported the prices of Russian wheat, which so far remain at the level of 228-230 $/t FOB for wheat with protein of 12.5%. Stocks of wheat traders and processors now make up 14.4 million tons, which is 7.8% lower than the level of the same period of the previous MG, whereas on 1 September the gap was 2.9%.