Wheat prices in the US fell by more than 5%

Forecasts of heavy precipitation in the US corn and soybean belts led to a sharp drop in prices for soybeans and corn by 6-7%, and puts strong pressure on wheat prices, despite the fact that forecasts do not promise the same heavy rains in the US Plains area, traders staged a stormy sell-off of futures after a long weekend. Quotes of July soft wheat futures in Chicago fell to a 3-month low amid weather and low export rates.

Data from the weekly report on wheat exports from the United States again did not meet analysts ' expectations and for the week decreased by 10% to 258.5 thousand tons, and the total volume of wheat inspected for export since the beginning of the new 2021/22 season reached 1.8 million tons. T, which is 25% less than on the same date last year.

July quotes of American wheat declined:

• soft wheat SRW in Chicago by 9 9.46 to 2 227.81 / ton;
• HRW durum wheat in Kansas City up 1 13.14 to 2 211.46 / ton;
• hrs durum wheat in Minneapolis increased by 2 20.30 to.296.79/ton.

After the close of trading, the U.S. Department of Agriculture (USDA) released a crop status report for July 4, in which it lowered its assessment of winter wheat by 1% to 47% rated as "good-excellent" (51% a year ago), while the assessment of spring wheat fell by 4% for the week to 16% (70% on average over 5 years).

 Winter wheat harvesting is lagging behind last year, and as of July 4, 45% of the area was harvested (33% a week ago, 54% a year ago and 53% on average over 5 years).

These data will provide serious support to spring wheat quotes today.

On Tuesday, September French wheat, like July soft wheat in Chicago, fell to a 3-month low. In addition to the pressure of the downward dive of the US market, European trading was affected by the good prospects for its own harvest, as well as increasing forecasts of wheat yields in the Black Sea countries.

September prices of flour wheat on the Paris matif exchange decreased by €2.25 to €198.25/ton or € 234.29/ton.

Purchase prices for wheat in Ukraine have been actively declining since the beginning of the week and yesterday fell by another ще 10-15/ton with delivery to the port to the level of 2 205-207/ton, or 6300-6500 UAH/ton, but the decline in quotations on American stock exchanges today will further increase pressure on prices.

Black Sea wheat futures on the Chicago Stock Exchange fell again by 6 6 yesterday:

• July-by 6 6.5 / ton to 237 / ton;
• December-by 6 6.25 / ton to 244.75 / ton.