Bid prices of wheat rose to $300/ton, but buyers are not ready for them

against the background of export restrictions from Russia speculators warmed up wheat prices on world markets to $300/t FOB, but more and more importers are refusing to buy grain at that price. Russian analysts believe that the introduction of duties on Russian wheat will not reduce exports, since the duty will apply to the new crop, so it makes no sense to defer the sale of wheat, when it is possible to implement it at a high price.

Yesterday private importers from the Philippines canceled tender for the purchase of 100 thousand tons of feed wheat optional origin for April-may too high bid prices, which reached 310 $/MT C&F.

on the Eve of the Egyptian GASC canceled tender due to excessively high bid prices, and now traders are awaiting the outcome of tenders for the purchase of large quantities of wheat, announced by Algeria and Turkey.

Typically, the activity of importers in the second half of the season decline, especially in the case favorable for new crop conditions, so the fight for customers will intensify in March and April.

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• the March futures for milling wheat on MATIF Monday updated the 7.5-year high yesterday and remained at the level of 235,75 €/t or 286,28 $/t

wheat Exports from the EU amounted to of $ 14.99 million tonnes to 2.73 million tonnes is inferior to the previous year, and the rest of the season need to export 12.5 million tons, or 540 thousand tons weekly.

On US exchanges traders took profits after a rise in prices last week.

wheat Exports from the U.S. for the week decreased by 1.5% to 276,9 million tonnes, and just season reached 15.6 million tons, which is 2.6% below last year's pace. To reach the USDA projected at 26.8 million tons during the 19 weeks that remained before the end of the season, you need to export at 590 thousand tons of wheat.

the March wheat futures in the U.S.:

the

0.09 $/t to 236,44 $/t on a firm spring HRS wheat in Minneapolis.

• 0.37 $/t to 236,62 $/t for solid winter HRW wheat in Kansas city

Fell 1.19 $/t to 247.00 $/ton SRW soft winter-wheat in Chicago.

After the rise in prices for Russian wheat to 300-305 $/MT FOB European prices of wheat rose to the same level with Australian – up to 280-290 $/t FOB, Argentina – to 280 $/t FOB.

Russia accelerates the export of wheat and has already shipped 28 million tons with a projected 37 to 39 million tons, so the rest of the season can export another 9-11 million tons.

Ukraine has already exported 12.8 million tons of wheat, and the rest of the season can still ship 4.7 million tons.

against the background of high prices, the producers stepped up sales, so after reaching the psychological level of $300/MT FOB prices for wheat stabiliziruemost or even a little lower.