On exchanges ongoing speculative price increases

2019-03-18 12:07:18
Machine translation
On exchanges ongoing speculative price increases

Trading on the wheat stocks on Friday took place against the backdrop of rising demand in the physical market from importers that supported the quotes.


Thanks to the victory of French wheat in tenders in Algeria and Tunisia, and active shipping ports in the European markets finished Friday with growth.


  • the May futures for milling wheat on the Paris MATIF rose by 1.5 €/t to a two-week high 189,25 €/t or 214,35 $/t


However, the price of wheat of the new crop continue to decline under pressure is favorable for spring crops sowing weather conditions and good condition of crops of winter wheat. September wheat futures fell 1.25 €/ton to 177 €/t in December – 1 €/t to 180,25 €/t


Speculators warm up the American exchange's concern regarding the state of the winter crops, which at the current stage of development are very vulnerable. In addition, the cold weather is delaying sowing of spring wheat.


Export sales of wheat from the United States amounted to 87%, which is 3% higher than last year's level, but 10% below the average 5-year average. U.S. wheat is now the cheapest in the world market, so traders will be hoping to enhance sales to the end of the season.


May futures U.S.:

to 2.39 $/t to 162,77 $/t for solid winter HRW wheat in Kansas city

0.83 $/t to 203,83 $/t on a firm spring HRS wheat in Minneapolis.

  • 3.49 $/t to 169,84 $/t for SRW soft winter-wheat in Chicago


the price of Russian wheat continue to decline. Prices of demand for wheat with protein 12.5% down to 210-220 $/t FOB, although prices remained at the level 225-228 $/t FOB. Low prices for wheat of the new harvest, which is expected at the level of 78-80 million tonnes, putting pressure on the quotations of the old crop.


Under the yield 2019 in Russia winter grains sown 17.7 million hectares, which is 615 thousand hectares over the previous year. At 91.5% of winter crops areas are in good or satisfactory condition.