The precipitation deficit in the United States and Russia supports the stock price of the wheat

2020-11-24 12:01:36
Machine translation
The precipitation deficit in the United States and Russia supports the stock price of the wheat

In the beginning of the week the price of wheat on world markets rose amid lack of precipitation in the United States, Russia and the South-East of the EU, however, the decline in export demand weighed on physical markets, which has led to decrease in quotations of the black sea wheat.


On the exchange in Chicago on Monday, investors have been speculative purchases. Prices support neighboring markets of soybeans and corn, which grow thanks to the active demand and the deterioration of crops in the United States. According to USDA, the number of crops of winter wheat in good or excellent condition for the week decreased by 3% to 43%, whereas a year ago the figure was 52%. Sufficient reserves of moisture in the soil recorded only 59% of areas, compared with 83% a year ago.


the Export of wheat over the week grew by 7% to 358 thousand tonnes, and since the beginning of the season was 12.4 million tonnes, equivalent to last year's level.


December futures U.S.:


0.37 $/t to 202,55 $/t on a firm spring HRS wheat in Minneapolis.

  • 2.02 $/t to 220.00 $/t for solid winter HRW wheat in Kansas city

Fell by 0.55 $/t to 199,33 $/ton SRW soft winter-wheat in Chicago.


the Paris stock exchange grows after Chicago and accelerating the rate of export of soft wheat, the backlog from the previous year reduces the 3rd week in a row.



  • December futures for milling wheat on MATIF rose by 0.75 €/t to 211,5 €/t or 250,48 $/t


According to FranceAgrimer, winter wheat sown in France, 95% of the area, and thanks to favorable precipitation the last two months most of the crop is in good or excellent condition.


the EU Countries (with the UK) in 2020/21 MG as of November 22 exported 9,191 million tonnes of soft wheat, which is 20% inferior to the corresponding indicators 2019/20 Mr.


Today, the grain Agency of Tunisia (ODC) will hold a tender for purchasing 75 thousand tons of solid and 92 thousand tons of soft wheat and 75 thousand tons of feed barley, the results of which will affect the quotations of the European wheat.


Pakistani Corporation TSR yesterday got on the tender 340 thousand tons out of a planned 400 thousand tons of milling wheat at an average price of 286,75 $/t C&F, which corresponds to the price of the previous auction where it was purchased mostly Russian wheat.


Prices for December deliveries of Russian wheat protein 12,5% for the week decreased according to the Agency IKAR by $2/t to 252 $/t FOB-Black sea ports, according to SovEcon's$1/t to 253 $/t FOB. The demand decreases because buyers give preference to wheat from Argentina and Australia, the sellers which reduce the prices of the new crop.


In the main regions of winter wheat production in Russia, the rain passed at the level of 40-60% of normal, which increases the moisture deficit and does not contribute to the improvement of crops.


In Ukraine, the demand for wheat is low and the traders purchase wheat at the port at $240/t or 8000-8150 UAH/t. the increased purchasing is expected in the spring, when producers increase the supply. The winter crops mostly satisfactory, only in the South fields remains moisture deficit.

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