The increase in the price of wheat of the new harvest is accelerating

the Delay of sowing of spring wheat in the United States and Russia, as well as the dry frosty weather on the American plains and the Midwestern United States continue to raise the price of wheat of the new harvest, which had almost reached the level of prices of wheat old crop, and in some bases even exceeded mais quotes. So, in USA currently, futures for wheat of the new harvest is more expensive than the may contracts.

the Wheat exchange in USA yesterday traded under the influence of two opposing factors – weather and export. However, the factor of the difficult weather conditions stronger than the disastrous results of weekly wheat export of both old and new crop.

So wheat futures rose:

• for SRW soft winter-wheat in Chicago may - 2.11 $/t to 240,21 $/t July – 1.9 $/t to 240,90 $/t,
• for solid winter HRW wheat in Kansas city may - 1.56 $/t to 223,31 $/t July – 1.38 $/t to 226,10 $/t,
• on a firm spring HRS wheat in Minneapolis may - 0.83 $/t to 243,70 $/t July – 0.6 $/t to 246 $/t

Data export sales and shipments continue to put pressure on prices, especially given China's refusal from the purchase of previously contracted 130 thousand tons of wheat.

Weekly export sales of old crop wheat fell to the lowest season of the level of 56.6 thousand tons, and wheat of the new harvest to 274,4 thousand tons, which is inferior to the expectations of traders. In General, wheat old crop implemented 25.3 million tonnes, which is 95% of the USDA forecast for the current season.

the Actual wheat exports from the U.S. last week fell by 26% to 467,1 kt and the overall in the season amounted to 20.3 million tons.

• the May futures for milling wheat on MATIF fell yesterday for another 1,25 €/t to 219,5 €/t or 262,65 $/t, while the September rose 1.75 €/t to 206,5 €/t or 247,1 $/t

the July futures black sea wheat also rose 1% to 245 $/t

In Ukraine exporters has stepped up the purchase of wheat and raised prices at the port to 225-230 $/t or 7000-7220 UAH/t. the Forward price of wheat of the new harvest also increased in the port to 217-220 $/t

Weather conditions contribute to the development of crops of winter wheat in Ukraine and Russia, but the delay of sowing in Russia, later can increase the effect on prices. According to the Ministry of agriculture of Russia, as of April 14 spring wheat in the country were sown only 113,7 hectares, or 0.9% of the planned areas.