Strong demand and drought in the United States supported stock prices for wheat

After a sharp collapse at the beginning of the week, global wheat prices are gradually recovering amid the latest procurement tenders and dry weather forecasts for winter wheat growing regions in the United States.

On Monday, Egypt'S GASC purchased 600 thousand tons of food wheat at an average price of 3 378.33/T C&F, and yesterday the Tunisian state agency ODC contracted 100 thousand tons of soft food wheat at an average price of C 384.7/T C&F and 92 thousand tons of durum wheat at an average price of 6 680.9/T C&F.

Jordan this week purchased 60 thousand tons of food wheat, and the state agency of Saudi Arabia SAGO announced a tender for the purchase of 535 thousand tons of wheat for delivery in May – July, which will be a new price indicator for the market.

In the US, wheat prices rose 4% in two sessions on news of dry and warm weather in southern Texas, Kansas and Missouri. Export sales for the week of November 19-25 amounted to only 79 thousand tons, and in general in the season they reached 14.32 million tons, which is 23% lower than last year's pace. Restraining sales by producers keeps wheat prices at a high level.

December futures on US stock exchanges fell:

• by 1 10.29 / ton to Чикаго 296.3/ton for soft winter SRW wheat in Chicago,
• by 8 8.91 / ton to H 308.1/ton for hard winter HRW wheat in Kansas City,
• by 8 8.82/ton to.389.9 / ton for hard spring HRS wheat in Minneapolis.

At the same time, December Black Sea wheat futures on the Chicago SWOT yesterday rose by 2 2.25/ton to 3 342.75/ton.

In Ukraine, the price of food wheat due to active export demand increased in ports to 3 320-322/ton or UAH 9800-10000/ton. demand for wheat remains low from processors, who expect a decrease in trade activity in the flour market during the New Year holidays.

• December European wheat futures on Paris ' Euronext rose by €8.5/ton yesterday to €290.5/ton or € 328.08/ton at the results of the Tunisian tender.

It is worth noting that March wheat futures on all exchanges are 5 5-10/ton more expensive than December and January. This means that traders expect a further increase in prices against the background of not very good condition of winter crops and a reduction in supplies from Russia in winter.