Wheat prices have started to recover thanks to the speculators

Caused by the may USDA report drop in wheat prices yesterday changed speculative adjustment. The market was supported by the results of tenders and reduced projections of future wheat crops in the EU.

Experts Strategie Grains has lowered the forecast of wheat production by EU countries in 2020/21 MG from 135 to 132,9 million tonnes, which is 13.6 million tons will give the level of the 2019 Estimate of the corn crop is also reduced with compared to 67.3 to 65.9 million tons, while the forecast of barley production increased from 62.3 62.6 million tons.

Traders also worried about drought conditions in some regions of Europe and cold weather with snow in Poland and Germany.

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• September futures for milling wheat on MATIF rose by 1 €/t 185 €/t or 199,85 $/t

Prices supported the results of the tender in Tunisia, where the Agency ODC has purchased 67 tonnes of soft milling wheat for delivery 25 June-25 July at a price 206,89-212,89 $/t C&F, exceed the purchase price of the tender period with the same delivery terms.

Futures contracts on soft wheat in Chicago rose yesterday with investors covered short positions after prices fall to 2-month low. Quotes of hard wheat continued to fall under pressure from the may USDA report and the failed export. Export sales of old crop wheat from the U.S. last week fell by 17% to 203,5 thousand tonnes, while sales of the new crop increased by 10% to 149,8 thousand tons

In the 2019/20 season, which ends in three weeks, the United States exported 22,795 million tonnes projected by the USDA to 26.4 million MT of wheat. Remain unsold 3.5 million tons, which may later export.

the July wheat futures in the U.S. fell:

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0.09 $/t to 186,65 $/t on a firm spring HRS wheat in Minneapolis.

• 0.92 $/t to 165,99 $/t for solid winter HRW wheat in Kansas city

Increased by 0.18 $/t to 184,54 $/ton SRW soft winter-wheat in Chicago.

In Ukraine, the lack of export demand, wheat prices at the port dropped to 190-195 $/t or 6070-6200 UAH/t for deliveries in may and 177-180 $/t or 5700-5800 UAH/t for deliveries in July. Good rainfall increases the potential of the future harvest, which local experts estimate of 24-27 million tons, while the USDA projected at 28 million tonnes.