Wheat prices grow due to speculative purchases

Speculative growth in wheat prices on Friday could not offset the previous week's decline.

Quotes supported neighboring markets of soybeans and corn that grow on the rumors about the possible resumption of trade talks between the US and China, and on predictions of heat in the US and the EU this week that will negatively affect the crop.

Planning by the Federal reserve lowering interest rates increases the volatility of the dollar and speculative investments in the futures markets. Investors believe the wheat market is significantly oversold, therefore, actively carry out the purchase.

the September wheat futures in the U.S.:

by 2.66 $/t to 161,67 $/t for solid winter HRW wheat in Kansas city

1.38 $/t to 194,46 $/t on a firm spring HRS wheat in Minneapolis.

• 3.31 $/t to 184,63 $/t for SRW soft winter-wheat in Chicago

However, over a week even with Friday's adjustment SRW contract lost 1.5%, HRW – 4%, while HRS was up 1.3%.

the Paris stock exchange ended the week with growth, as the support Chicago overcame the pressure of the new forecasts increase the production of French wheat.

• September futures for milling wheat on MATIF rose by 2.25 €/ton to 177 €/t or 199,36 $/t

Russia confirms the high quality of the new wheat. As of 18 July, 87% of the harvested wheat contain 11-12,5% protein.

the price of Russian wheat remains high 196-197 $/t FOB for August shipments, but the activity of buyers is not observed.

Asia's Largest wheat importer – Indonesia halted purchases because of rising prices for black sea grain.

Now black sea wheat with protein 11.5% for the Asian markets offer for 230 $/MT C&F, 10 $/t more expensive than a few weeks ago.