A high sowing rate of winter wheat put pressure on stock prices

Warm and dry weather favours the sowing of winter wheat in the United States, Ukraine and Russia, which puts pressure on the stock market.

In Ukraine, winter crops for harvest in 2019 rock planted 6 million hectares or 84% of the planned sowing 7.2 million ha, in Russia – 16.8 million hectares, or 97,8% of the forecast (against 15.8 million hectares in 2017) in the US – 65% of the area, which is 2% below the average 5-year average.

In the market of French wheat continues to fall. After updating the December futures last week, a 1.5-month high, investors are speculative sale. Further pressure on prices low export demand for French wheat and the Euro strengthened for a second day.

• December futures on milling wheat in Paris fell 1.25 €/t to 203,25 €/t or 235,17 $/t

After a two-day increase in the price of us wheat declined slightly under pressure of speculative sales and the neighboring markets of soybeans and corn.

December wheat futures in the U.S. fell:

1.38 $/t to 194.00 $/t for solid winter HRW wheat in Kansas city

1.56 $/t to 219,08 $/t on a firm spring HRS wheat in Minneapolis.

• 0.55 $/t to 192,35 $/t for SRW soft winter-wheat in Chicago

In Ukraine there is an active demand for wheat with protein 11.5%, especially feed prices, which rose to 195-196 $/t, while fodder corn at the port bought at 152-154 $/t. This is due to the desire of traders to close the contracts and logistical problems associated with the increase in transportation costs by 50% and rail 20%, which significantly reduces export activity sellers.

For the week, grain exports from the ports of Ukraine decreased in 5 times to 205 thousand tonnes, of which wheat accounts for 82 thousand tons.