Lower corn prices continue to put pressure on wheat prices

Forecasts of favorable weather with heavy precipitation in the US corn belt, as well as low export sales, continue to reduce corn prices, which increases pressure on wheat quotes. On the other hand, the lack of precipitation in the US spring wheat growing area continues to support spring wheat prices, especially with hot weather forecasts of 32-34 degrees for the coming week.

Export sales of wheat from the United States for the week increased by 28% to 290,836 thousand tons of wheat, which is within the expectations of traders, and since the beginning of the season, only 6.7 million have been sold, which is 11% less than a year ago.

Actual wheat exports over the past week have jumped sharply almost three times to 385 thousand tons, and a total of 1.546 million tons have been exported since the beginning of the season (June 1), which is 31% less than a year ago.

September quotes of American wheat as of July 09:

• soft wheat SRW in Chicago fell by 1 1.10 to 2 225.97 / ton;
• HRW durum wheat in Kansas City rose на 2.20 to 2 218.25 / ton;
• hrs durum wheat in Minneapolis rose на 3.40 to.299.18 / ton.

The forecast for an increase in the EU wheat harvest to 130.4 million tons, which is 11% more than a year ago, continues to put pressure on European wheat prices, especially against the background of the continued strengthening of the euro against the dollar to the level of 1.188.

September prices of flour wheat on the Paris matif exchange decreased by €2.50 to €197.25/ton or € 233.92/ton.

The grain agency of Algeria (OAIC) at the tender on July 09 purchased about 30 thousand tons of flour wheat with a plan of 50 thousand tons at a price of 2 288/ton C&F with delivery in August.

The start of wheat harvesting in Ukraine showed the first wheat yield slightly below expectations, at the level of 3.1 t/ha.

Wheat exports for the week increased by 74% to 113 thousand tons, and since the beginning of the season (July 1), 178 thousand tons of wheat have been exported (13 thousand tons a year ago).

Quotes of Black Sea wheat on the Chicago Stock Exchange on Friday continued to decline: July futures by лип 1/ton to 2 238/ton, and December by.2/ton to. 243.75/ton.

Data on wheat yields in southern Russia are also higher than last year, but uncertainty with the weather in the Volga region, where there is a shortage of precipitation on spring wheat crops, and the drought in Kazakhstan continues to restrain the fall in prices.

Demand prices for Black Sea wheat fell to F 225-235/ton FOB for delivery in July-August, but hot weather forecasts this week will contain a further drop in prices.