A tender in Egypt and the UDSA report supported the price of wheat
on Tuesday, wheat prices received support from the tender in Egypt, where it was purchased only two vessels of the black sea wheat, and bullish balance UDSA corn.
bid Prices at the tender were the divergence to $20/ton, but in the end, GASC bought 60 thousand tons of Romanian wheat at the price 197,49 $/t FOB Constanta and 60 thousand tons of Russian at the price 196,6 $/t FOB Novorossiysk that the delivery will match the level 209,11-of 209.6 $/t CFR delivery period 11-20 July. The purchase price was $15/tonne lower than at the beginning of the season last year that became a benchmark price for black sea wheat of the new harvest.
- On this news, the September wheat futures yesterday rose 0.5 MATIF €/MT to 177,75 €/t or 201,4 $/ton, despite the strengthening of the Euro against 1,133 $/€.
In the June balance UDSA wheat in 2019/20 MG beginning stocks increased by 1.6 million tonnes to 276,57 million tons due to higher balances in Argentina, Ukraine those Russia.
Forecast of production increased by 3.3 million tonnes to 780,83 million tonnes due to increase to 1 million tonnes of wheat for the Ukraine, India and Russia, for which Ukraine will be able to increase wheat exports by 0.5 million tons to a record 19.5 million tonnes, Russia – 1 million tonnes to 37 million tonnes.
Evaluation of world consumption of wheat increased by 3.6 million tonnes to 763,06 million tons thanks to an increase in consumption of coarse grains due to a drop in corn production. Through that ending stocks will grow by 0.7 million tons to a record 294,34 million tons.
Despite the bearish balance, the price of wheat increased significantly with the support of the sharp decrease from 33 million tonnes of forecast corn production in the United States.
- the July wheat futures rose in Chicago by 2.3% to 190,11 $/t in Kansas – 2.4% 167,5 up to $/t
Reduction Australian Agency ABARES the forecast of wheat production in the country by 11% to 21.2 million tonnes due to prolonged drought, also supported prices.