Wheat prices continue to rise on speculative factors

Yesterday the price of wheat on world markets rose on background of a possible deterioration of wheat and maize in the USA as a result of the hurricane, however, the data of weekly monitoring by the USDA surprised the market, although it was published already after closing of the trades.

the Amount of corn in the U.S. in good or excellent condition fell last week by only 2% to 69% (56% in 2019), and spring wheat crops by 1% to 70%, which corresponds to last year's level.

the September wheat futures in Chicago showed the greatest from July 15 day growth. Optimism in the market added the news about the sale of 130 thousand MT of hard winter wheat, perhaps to China, though it is not officially confirmed.

wheat Exports from the U.S. for the week decreased to 462 thousand tons, which corresponds to the lower boundary of the expert expectations and 22% inferior to the corresponding indicator of the 2019 season exported 5,625 million tons of wheat, which is 2% higher than last year's pace.

Winter wheat threshed in the US 93% of the area, spring – 30% compared to 14% in 2019 and 43% on average for 5 years.

the September wheat futures in the U.S.:

the

by 4.41 $/t to 160,66 $/t for solid winter HRW wheat in Kansas city

by 2.76 $/t to 185,55 $/t on a firm spring HRS wheat in Minneapolis.

• by 6.06 $/t to 189,78 $/t for SRW soft winter-wheat in Chicago

the Paris Bourse continues speculative growth followed by Chicago, however, further increase in quotations will limit the strengthening of the Euro against the dollar.

Traders expect the outcome of the tender in Algeria, where the competition of the French wheat will be in German, Polish and Baltic with a much higher volume of proposals.

the

• September futures milling wheat on MATIF rose by 4 €/t to month high 184,75 €/t or 219,65 $/t

the Ministry of economic development of Ukraine signed with grain market participants (producers, processors, exporters and agroecosistemi) Memorandum, which defines the maximum export of wheat in 2020/21 MG at the level of 17.5 million tons, which corresponds to the forecasts of experts.

Reduction of demand prices for wheat in Ukraine as a result of the appreciation of the hryvnia stopped sales from producers, so traders to execute contracts in the near future will be forced again to raise prices.

Due to the high yields in the Volga region and the Centre experts IKAR raised its forecast for the wheat crop in Russia in 2020 another 1 million tons to 82 million, although a week ago increased it to 81 million so It will be an additional factor limiting the growth of prices for black sea wheat in the near future.