Wheat prices are rising in spite of the fundamental factors

Yesterday, on world markets, wheat prices after a long fall turned up on the background of reducing the fed rate by 50 p. and the decline of the dollar relative to other currencies. Other countries may also soon lower interest rates to stimulate the economy. Speculative win bearish fundamental factors that pressured prices of old and new crop.

Egyptian GASC in 2019/20 Mr purchased of 5.92 million tons of wheat, accounting for 90% of imports to the country of 6.49 million tons of wheat. In the domestic market in 2019 GASC purchased 3,27 million tons of wheat, which is 8% higher than the previous year.

Due to precipitation of the last weeks the condition of crops of winter wheat in the US, the EU and Ukraine have improved significantly.

According to the forecast of the Ministry of agriculture of Australia, in 2020/21 MG wheat production in the country will grow by 41% to 21.4 million tonnes, and exports by 30% to 12.4 million tons.

processor of the Betagro Group of Thailand has purchased the tender of 60 thousand tons of feed wheat black sea origin presumably at a price 213,5 $/t CFR for delivery in July. At the previous auction on January 21, the company purchased fodder wheat for March delivery at a price 256 $/t CFR.

After Chicago, the market for French wheat after a three-day fall Tarasov in speculative purchases. Prices supported Ethiopia announced a tender for purchase of 400 thousand tons of milling wheat of arbitrary origin.

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• the May futures for milling wheat on MATIF rose by 1.5 €/t to 184,5 €/m or 205,97 $/t

Chicago thanks to speculators yesterday razvernulsya up after 4-day fall. The decrease in the discount rate in a certain way supported prices.

the May wheat futures in the U.S.:

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0.18 $/t to 168,37 $/t for solid winter HRW wheat in Kansas city

2.11 $/t to 196,21 $/t on a firm spring HRS wheat in Minneapolis.

• 1.47 $/t to 193,73 $/t for SRW soft winter-wheat in Chicago

amid low demand, the prices for Russian wheat being gradually reduced. Wheat protein 12,5% offer to put in March at 212-215 $/t FOB, while the bid prices are at 210 $/t FOB.