Shops cool the wheat market
Egyptian operator Gasc has purchased 350 thousand tons of Russian and 60 TMT of Romanian wheat in the tender, which was conducted after a significant jump in wheat prices in the United States. The purchase price on FOB basis was in the range of 199-202 $/t, whereas last year it amounted to less than 165 $/t
For shipments to 2017/18 MG Gasc already purchased 1.43 million tons of wheat, though he's not very active early in the season, given the domestic stocks.
However, after the information about a bad harvest (which has not yet received official confirmation), last week, Gasc increased its forecast of imports of wheat to Egypt this season to 200 thousand tons to 12.1 million tons, 700 thousand tons exceeds the last year indicator.
Louis Dreyfus offered by American hard wheat at 255 $/t, however, the price of Russian wheat from Aos and Daewoo, which won, was less than $200/ton, excluding freight and only 2-3 $/t higher than prices of the previous tender.
Algeria acquired 420 thousand tons of milling wheat at a price 213,75-216 $/t including freight. The USDA increased the forecast of wheat imports in Algeria in 2017/18 MG 200 thousand tons to a record 8.2 million tons.
the Crops of spring wheat in the U.S. will continue to suffer from heat and drought. However, investors fix rates after updating records.
Experts have reduced the forecast weekly export sales of US wheat to 300-500 thousand tons against 350-550 thousand tons a week ago.
the September wheat futures in the U.S. fell:
- by 7.72 $/t to 198,05 $/t for SRW soft winter-wheat in Chicago
- by 8.45 $/t to 200,80 $/t for solid winter HRW wheat in Kansas city
- by 18.65 $/t to 282,55 $/t on a firm spring HRS wheat in Minneapolis.
- September quotes French milling wheat on MATIF fell by 2.75 Euro/ton to 177,75 Euro/ton or 202,77 $/t