The Egyptian tender will determine nekonkurentno the price of wheat
Egyptian State Agency GASC today, August 16, will hold a tender for the purchase of at least 55-60 thousand tons of soft milling wheat supply 20-30 September 2017
GASC expects to see at the tender wheat supply from USA, Canada, Australia, France, Germany, Poland, Argentina, Russia, Romania, Ukraine, Kazakhstan, Bulgaria, Hungary and Paraguay. International sellers must separately submit calculations for the cost of Maritime transport.
Today's tender takes place on the background of a significant weakening in the prices of European and American wheat, and will be a new test of Russian grain on the competitiveness.
Speculators, who on Monday brought Chicago to a small plus on Tuesday with a vengeance continued sales, referring to "bear" the August USDA report. Special effect in anticipation of the new tender in Egypt were a factor in the increase of the forecast of Russian wheat exports.
investors took into Account the improvement of the yield of spring wheat and corn.
Additionally, at the end of yesterday's trading was influenced by a stronger dollar.
September quotes of the American wheat have decreased:
- soft wheat SRW in Chicago by 4.23 $/t to 157,81 $/t,
- for hard wheat HRW in Kansas city by 3.77 $/t to 156,71 $/t,
- on a hard spring wheat HRS in Minneapolis by 4.32 $/t to 241,86 $/t
In Europe now in the midst of the summer holidays, so stock trading is rather sluggish. Even such a powerful driver, as Chicago wheat resumed its decline, was unable to activate trades. However, a significant weakening of the Euro relative to the USD became more significant for the market.
- September quotes milling wheat in Paris at the MATIF rose by 0,50 €/t to 159,50 €/t (187,16 $/t).
In Ukraine continue to increase the supply of new harvest, further pressure on prices, which fall under the influence of global trends. The price of wheat with protein 11.5 percent continued to decline from 165 to 160 to 162 $/t or 4750-5000 UAH/t, feed wheat stabilized at 150 to 152 $/t or 4400-4600 UAH/t with delivery to the port.
Demand for wheat with protein of 12.5% remains high, so the price stayed at the level 170-173 $/t or 5250 5350 UAH/t with delivery to the port.