Wheat exchange prices plummeted

Since the beginning of the month, global stock exchanges have seen a rapid speculative increase in wheat prices, which yesterday was replaced by a decline under pressure from fundamental factors of increased supply, which will soon grow from Russia, Australia and Argentina, and a drop in demand from importers, who reduced purchases against the background of high prices.

Today, the state grain agencies of Egypt (GASC) and Algeria (OAIS) will hold regular tenders that will demonstrate the readiness of importers to step up purchases at high prices.

The decline in wheat exports from the EU also puts pressure on prices, despite the fall in the euro against the dollar to 1 1.13/€.

According to the European Commission, wheat exports from the EU last week fell to the lowest level in the season - 27.7 thousand tons, and in general in the season amounted to 10 million tons, which is only 8% ahead of last year's pace. Although according to the USDA forecast, in 2021/22 MG, the EU will increase wheat exports compared to the previous season from 29.7 to 36.5 million tons.

• December wheat futures on Paris Euronext yesterday fell by 5.75 €/ton to 289 €/ton, but due to the depreciation of the euro, the dollar price fell to 3 326.4/ton, which is already вже 20/ton lower than the value of Black Sea Futures.
• December Black Sea wheat futures at the Chicago SWOT, under pressure from falling prices for European wheat, which is the main competitor in the sales markets, fell by 5 5.25/ton to.346.75/ton yesterday.

In the United States, wheat prices are falling following neighboring soybean and corn markets, as well as against the background of an improvement in the state of winter crops.

Vietnam canceled the import tariff on wheat from the United States from December 1, which will allow to step up supplies. In the previous season, Vietnam imported only 4 million tons of wheat, including 0.5 million tons from the United States.

December US futures fell:

• by 5 5.88 / ton to Чикаго 297.7/ton for soft winter SRW wheat in Chicago,
• by 5 5.6 / ton to H 301.6/ton for hard winter HRW wheat in Kansas City,
• by 4 4.26 / ton to.372.9 / ton for hard spring HRS wheat in Minneapolis.

Now it is worth watching corn prices, which may collapse under the pressure of significant global supply and low demand prices from importers, which will accordingly affect wheat quotes.