Purchase prices for wheat in Ukraine began to fall

< span style="font-size:14px;" > the May USDA report sharply lowered stock prices for new crop wheat, which increased pressure on prices in the physical market, which was already suffering from low demand. Buyers are holding back purchases amid high supply prices and in anticipation of the start of the North African harvest, which will be better than last year.

< span style="font-size:14px;" > in Ukraine, prices for old and new crop wheat increased by 2 20-25/ton in two weeks, following corn prices, but at the end of last week, against the background of falling corn and wheat markets, they decreased by 5 5-10/ton to 2 252-255/ton for deliveries in May – June and to.245-248/ton for deliveries in July.

< span style="font-size:14px;" > despite the lack of demand for old-crop wheat, prices remain high, as they are supported by high adjustments for the new crop. Producers increased the supply of old-crop wheat against the background of good precipitation and improved crop conditions.

< span style="font-size:14px;">during the week, Ukraine exported 238 thousand tons, and in general in the season – 15.4 million tons, which is 21% lower than last year's pace. By the end of the season, it is necessary to export another 2.1 million tons or 350 thousand tons per week, which will be difficult to do due to low demand.

Strategie Grains experts in the May report left the forecast of soft wheat production in the EU in 2020/21 MG at the level of 129.6 million tons, which is 8.5% higher than last year – 119.4 million tons. production in France will be offset by an increase in Romania due to favorable weather conditions. The forecast for wheat exports from the EU in my 2021/22 was increased from 27.1 million tons to 27.5 million tons compared to April estimates.

< span style="font-size:14px;" > according to Franceagrimer, the number of soft wheat crops in good or excellent condition remained at 79%, compared to 55% last year.

< span style="font-size:14px;" > on Friday, the French wheat market recovered from the shock caused by a new USDA report. Prices were supported by unstable weather, which can negatively affect the harvest in the Northern Hemisphere before and during harvesting, as well as a drought in South America, where wheat is now sown.

• < span style="font-size:14px;">September wheat flour futures on MATIF rose by 2 € / T to 218 € / t or<264.66 / t. < / span> < / li>

< span style="font-size:14px;" > on the Chicago Stock Exchange on Friday, prices rose slightly due to speculators, while on other platforms traders did not find support factors.

< span style="font-size:14px;">July futures had the following dynamics:< / span>< / p>

• < span style="font-size:14px;">increased by 2 2.11 / t to м'яка 259.86 / t soft winter SRW wheat in Chicago,< / span> < / li>
• < span style="font-size:14px;">remained at 2 241.68/t hard winter HRW wheat in Kansas City,< / span> < / li>
• < span style="font-size:14px;" > fell 0 0.18/t to.272.17/t hard spring hrs wheat in Minneapolis.    

< span style="font-size:14px;" > heavy precipitation in the Northern Hemisphere, especially in the United States and France, continues to improve the condition of crops, which reduces stock prices.