Wheat prices are rising on the exchanges and physical markets

2020-10-08 12:16:53
Machine translation
Wheat prices are rising on the exchanges and physical markets

the Unfavourable weather in major producing countries remains the main driver of growth in wheat prices on the world exchanges and physical markets.

 

Despite the active sowing of wheat in the United States, Ukraine and Russia, the approach of the time of publication of the USDA report, which is likely to have a bearish tone, and the beginning of harvest in Australia speculators continue to buy the wheat, taking into account the precipitation deficit in the United States, Argentina and Russia. Black sea wheat went up to 240-245 $/MT FOB after the statement of the Ministry of agriculture of Russia on the introduction from 1 January of the quota on grain exports, despite the fact that the export forecast is raised by 5 million tons to 50 million tons.

 

a Decline in prices for European wheat up to 235-240 $/t FOB may soon increase demand, as buyers will choose the cheapest of the expensive proposals.

 

a Trading Agency of Pakistan TSR to tender October 5, bought 330 thousand tons of milling wheat (possibly Russian) with delivery up to January 15, 2021 at a price 278,5 $/t C&F, while prices were up 280,5-283 $/t C&F.

 

the Ministry of industry and trade of Jordan at the tender 7 Oct failed to acquire the planned 120 thousand tons of milling wheat because of too high prices.

 

Investors in the US has been speculative buying and closed short positions.

 

December futures U.S.:

the

3.77 $/t to 200,07 $/t for solid winter HRW wheat in Kansas city

by 4.04 $/t to 201,81 $/t on a firm spring HRS wheat in Minneapolis.

  • by 5.42 $/t to 5-year high 223,21 $/t for SRW soft winter-wheat in Chicago

 

against the background of growth of prices in Chicago and possible crop losses from drought in some countries the producers yesterday quotes French wheat fell to a historic record of 201 €/t

 

the

  • December futures for milling wheat on MATIF rose by 0.5 €/t 200,5 up to €/t or 235,84 $/t

 

December futures for black sea wheat on the stock exchange in the United States yesterday increased by 1.6% to 247,25 $/t, which led to higher prices for Ukrainian, and Russian wheat on the physical market.

 

In Ukraine, purchasing prices for wheat rose in port before 225-230 $/t or 7600-7700 UAH/t, but farmers continue to wait for the maximum price and do not hurry with sales.

 

Recent precipitation accelerated the sowing and while winter wheat was sown at 2.9 of the planned 6.1 million hectares. Experts believe that due to the high wheat prices and the possible shortage of precipitation in summer, which adversely affect spring crops, especially in the South, acreage of winter wheat can increase to 6.5 million hectares.

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