Egyptian tender supports wheat exchange prices

Yesterday morning, wheat prices on global stock exchanges fell amid uncertainty with further demand caused by an increase in the incidence of covid-19 around the world, especially new cases in China. However, at the end of the session, prices received support from the results of the tender in Egypt.

On October 27, the state Egyptian Agency GASC purchased 360 thousand tons of food wheat for delivery on December 1-10 at an average price of F 328.05/ton FOB or С 359.94/ton C&F, which is 6 6.54/ton FOB and C 8.34/ton CFR higher than at the previous auction on October 6.

• Wheat futures on Paris Euronext fell by 4 €/ton in the morning, but later rose to a 12-year high of 284.75 €/ton or 330.42 € /ton, but traders expect a price adjustment in the near future.

In the current season, the EU exported 8.99 million tons of wheat as of October 24, which is 24.3% faster than last year's pace. But these data do not take into account the indicators for France, which is the main European exporter of wheat and has not provided information for European statistics for the second month.

Prices for American wheat continue to rise, as they are now lower than prices for European and Black Sea wheat. The pace of exports is lower than last year, but traders expect improved data in today's report.

December US futures rose:

• by 2 2.76 / ton to Чикаго 279.2/ton for soft winter SRW wheat in Chicago,
• by 2 2.02 / ton to H 287.6/ton for hard winter HRW wheat in Kansas City,
• by 0 0.18 / ton to.375.5 / ton for hard spring HRS wheat in Minneapolis.

Against the background of the tender in Egypt, December futures for Black Sea wheat at the Chicago SWOT yesterday rose to a record 3 338/ton.

In Russia, as of October 27, 77.8 million tons of wheat were threshed from 27.7 million hectares or 97% of the area, which is significantly higher than the USDA forecast of 72.5 million tons. this may lead to sharp changes in the November USDA report, so Russian traders have stepped up sales. In the current season, as of October 21, Russia exported only 11.6 million tons of wheat (out of the USDA forecast of 35 million tons), which is 21.2% lower than last year's pace.

Ukraine has already exported 11.7 million tons of wheat out of the USDA forecast of 23.5 million tons, which is 18.2% ahead of last year's pace.

An increase in the supply of wheat from Australia and Argentina and corn from the United States and Ukraine in November – December may increase pressure on quotes, especially if the quarantine situation in the world worsens.