European exchange froze on conflicting factors
After speculative growth the day before, on Tuesday the quotation of French wheat got frozen.
Investors awaited the release of July's USDA balance, which, according to forecasts, had to wear a "bear" character.
in addition, on the day of the Egyptian company GASC the first season of the procurement tender French wheat proved so uncompetitive in price that even did not participate in the auction. Maybe the traders decided not to risk it because of the contradictory quality of French grain.
the State company GASC, which is a major importer of food, to tender on 12 July, which was the first in the new season, has purchased 180 thousand tons of soft milling wheat supply 10-20 August, 2016
Purchased the following amounts of grain:
- 60 thousand tons of wheat of Ukrainian origin from Louis Dreyfus at a price 161,84 $/ton FOB and the cost of sea freight is of 10.35 $/ton = 172,19 $/ton C&F
- 60 thousand tons of Russian wheat from Louis Dreyfus at a price 164,24 $/ton FOB and the ocean freight cost of 9.18 $/ton = 173,42 $/ton C&F
- 60 thousand tons of Russian wheat production at Aston for the price of 164,30 $/ton FOB and the ocean freight cost of 9.18 $/ton = 173,48 $/ton C&F.
pressures were resisted by the projections of the reduction in the production of soft wheat in France. However, there were certain disagreements. According to the forecast of the state Agency FranceAgrimer wheat production will be 10% lower than last year and will amount to 37 million tons. Independent Agency ODA has reduced its poperedni forecast at 3 million tons to 32 million tons.
In Paris, the MATIF milling wheat price for September transactions remained at the level of 161.00 EUR/tone or 178,32 $/ton.