Wheat prices fall in anticipation of harvests in Argentina and Australia

2019-11-01 12:21:03
Machine translation
Wheat prices fall in anticipation of harvests in Argentina and Australia

Wheat quotes continued to fall under pressure from the slow pace of exports and in anticipation of customers new crop from Argentina and Australia.

 

Argentina has already threshed 6.6 million hectares or 3.5% of the area of wheat. Experts BAGE has reduced the forecast of wheat production by 1 million tonnes to 18.8 million tonnes because of the shortage of precipitation during the main stages of development of crops and partial damage by the recent frosts. However, farmers are actively exporting wheat, fearing the introduction of the new President of the high export duties.

 

After a sharp rise in price of black sea wheat and ban on the import of Russian grain to Vietnam, buyers from South-East Asia drew attention to the Australian wheat, which competitiveness has increased significantly. The Philippines and Vietnam have already acquired a batch of Australian wheat for delivery in December and January.

 

Prices of Russian wheat protein 12,5% fell to 208 to 210 $/t FOB Novorossiysk for delivery in November, but the demand for it is almost absent. The purchase prices of wheat with 12.5% in deepwater ports in the beginning of the week amounted to 13.3-13.4 thousand rubles/t, which corresponds to last year's level, although the price is FOB 209,5 $/t compared with of 223.5 $/MT a year ago. Due to lack of demand prices for food wheat for the week fell by 600 roubles per tonne to 12.7-12.8 thousand rubles/t

 

the December wheat futures in Chicago are falling for the 4th day in a row. On Thursday, investors have been speculative sales amid improving weather in the United States. In addition, the price presses the cancellation of the meeting on 16-17 November between the leaders of the USA and China, where they could be signed on the 1st transaction, although the parties announced the search for a new meeting place.

 

Supported quotes weekly export sales at the level of 493,7 thousand tons, which corresponds to the upper boundary of the expert expectations. Total exports in the new season is 25% higher than in the previous MG.

 

the December wheat futures in the U.S.:

0.18 $/t to 192,53 $/t on a firm spring HRS wheat in Minneapolis.

  • 0.55 $/t to 154,23 $/t for solid winter HRW wheat in Kansas city

has Fallen in price on 0,18 $/t to 186,93 $/ton SRW soft winter-wheat in Chicago.

 

  • Following the collapse of the Chicago December futures for milling wheat on MATIF fell by €1/t to 178 €/t or 198,68 $/t

 

Traders fear that after the October activation of further European exports of wheat will decline.

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