The high purchase price of wheat in the tender in Egypt did not support the stock market
the Results of the Egyptian tender and the forecast reduction of wheat exports from Ukraine in the new season not supported wheat prices, which pushes the beginning of the harvest in the United States and improved weather in key growing areas.
Yesterday, the Egyptian GASC on the ground in the new season tender bought 120 thousand tons of wheat harvest 2020 delivery 10-25 of July. Was proposed by the party of Ukrainian wheat at a price 210-221 $/t FOB Russian price 213-221 $/t FOB, one batch of French wheat at a price 215,69 $/t FOB. Wheat from Romania and the United States did not participate in the auction.
According to the results of the tender were bought the cheap Ukrainian wheat:
the- 60 kt from the company Nibulon at the price of 210 $/MT FOB Nikolaev + cost of freight to 10.9 $/t = 220,9 $/t C&F
60 thousand tons of the company Dreyfus at the price of 210 $/MT FOB Odessa + the freight cost of 10.4 $/t = 220,4 $/t C&F.
Prices for U.S. wheat yesterday declined under pressure from the beginning of harvest of hard winter wheat, good weather in the South American Plains and favorable for crops precipitation in the black sea and some EU countries.
the July wheat futures in the U.S. fell:
the- by 2.66 $/t to 186,65 $/t for SRW soft winter-wheat in Chicago
4.32 $/t to 165,62 $/t for solid winter HRW wheat in Kansas city
1.74 $/t to 189,78 $/t on a firm spring HRS wheat in Minneapolis.
the economy Ministry estimated wheat production in Ukraine in 2020/21 MG at 23.2 million tonnes, and its export – 14.9 million tons.
the Ministry of agriculture of Moldova has lowered the forecast of wheat production in comparison with last year from 1.1 million tonnes to 500-600 thousand tons, which is almost not allow it to export.
In some regions of Romania, the Czech Republic and Poland spring drought was the strongest in 100 years. In Romania, which is the second largest exporter of wheat from the EU, the wheat harvest from 9.9 million tonnes in 2019 will be reduced to 5 million tons in 2020
the Paris stock exchange on Tuesday fell behind Chicago. Traders upset that French wheat at tender Egypt was much more expensive than Ukrainian.
the
- September futures for milling wheat on MATIF fell by 2.25 €/t to 184,25 €/t or 206,10 $/t
the results of the tender supported the bid prices of black sea wheat, which rose to 203-203 $/t FOB for the Romanian wheat protein 12% and 203-205 $/ton FOB for Russian wheat protein 12,5%, whereas the bid price remain at 195-196 $/t FOB.
