Tender in Algeria and speculative leap of quotations in the United States to stop the fall of wheat prices

European wheat yesterday rose in price on the results of the tender in Algeria and the us – with the support of the neighboring markets of soybeans and corn.

Despite the bearish USDA report on wheat quotes for US exchanges grew by 2-3%. According to estimates by USDA acreage of wheat in the United States in 2021 will grow to 46,36 million acres (33.08 million acres of winter and of 13.24 million acres of spring wheat), which is 4.4% higher than last year's figure of 3% of the estimates.

According to the quarterly report by the USDA, wheat stocks in the United States as of March 1 was $ 35.8 million tons, which is 1% below last year's level but exceeds the expectations of analysts of 34.6 million tonnes.

the Strengthening of the dollar against 1,1723 $/€ continues to put pressure on the us markets.

May futures declined:

• 5.90 $/t to 221,10 $/t for SRW soft winter-wheat in Chicago,
• by 6.19 $/t to 211,40 $/t for solid winter HRW wheat in Kansas city,
• 3.28 $/t to 224,40 $/t on a firm spring HRS wheat in Minneapolis.

Algerian Agency OAS purchased 480 kt European milling wheat with protein 11%, and delivery in April – may at a price of 279 $/t CFR, which is 44 $/ton lower than at auction on 10 March, when it was contracted 480 thousand tons of wheat at an average price of 323 $/t CFR.

• the results of the tender in Algeria and after the American exchanges may futures for milling wheat on MATIF rose 5.75 €/t to 215,5 €/t or 252,6 $/t, and the September – to 199 €/t or 233,3 $/t

the Jump in stock prices will stop falling wheat prices in the physical markets, which may increase demand from importers who have held back purchases in anticipation of lower prices.

bid Prices of the black sea wheat old crop remain at 250-255 $/t FOB, while the price of the new harvest decreased to 225-230 $/MT FOB that will soon affect the price of the old crop.

In Ukraine traders buy wheat old and new crop in the port for a price of 220 $/t or 7000 UAH/ton, although some are still willing to pay 7450-7500 UAH/t Processors have reduced the prices of demand to 7000 UAH/t with delivery to the mill.