As a result of tenders in Saudi Arabia and Egypt, wheat prices increased by 2.2-3.2%

Yesterday, wheat quotes on world stock exchanges grew rapidly, supported by the results of tenders in Saudi Arabia and Egypt.

Saudi Arabia'S state agency SAGO purchased 1.268 million tons of wheat with 12.5% protein at a tender (which is almost twice the planned purchase volume) and delivered in January – April 2022 at an average price of 3 377.61/Ton s&F.

Egyptian GASC purchased 180 thousand tons of Russian wheat for delivery on December 11-20 at an average price of F 332.33/ton FOB or С 364.26/ton C&F, which is 4 4.28/ton FOB and C 4.32/ton CFR higher than at the previous auction on October 27.

• Saudi Arabia's purchase of a large batch of European wheat led to an increase in December wheat futures on Paris Euronext by 2.8% or 8 €/ton to 291.25 €/ton or 337.86 / / ton.

Prices were also supported by the European Commission's reduction in the forecast of the EU soft wheat harvest in 2021 from 131 to 130.3 million tons due to production cuts in France, Romania and Hungary.

At the end of the Egyptian tender, December Black Sea wheat futures at the Chicago SWOT rose 2.2% to a record 3 342.5/ton, adding 6% of the price for the month.

Export prices for Russian wheat with protein 12.5% and delivery in November for the week increased by 5 5/ton to F 317-324/ton FOB according to the Icarus agency, and by 9 9/ton to F 325/ton FOB according to SovEcon. As of October 28, Russia exported 10.5 million tons of wheat in my 2021/22, which is 32% lower than last year's pace.

American wheat rose in price by 2.2-3.1% following the prices of European and Black Sea wheat, although data on exports and sowing do not contribute to the growth of quotations.

According to the NASS USDA, as of October 31, 87% of the area was sown with winter wheat in the United States, which is 1% lower than last year's pace, but 1% higher than the 5-year average. Seedlings were obtained on 67% of the area (70% last year and 68% on average over 5 years). 45% of crops are in good or excellent condition (43% last year).

During October 22-28, only 115.3 thousand tons of wheat were inspected for export to the United States, which is 70% less than in the previous week, and 2.7 times less than last year. In total, as of October 28, the United States exported 9.651 million tons of wheat in the season, which is 18% lower than last year's pace.

December US futures rose:

• by 9 9 / ton to Чикаго 292.9/ton for soft winter SRW wheat in Chicago,
• by 7 7.62 / ton to H 296.3/ton for hard winter HRW wheat in Kansas City,
• by 8 8.54/ton to.395.2 / ton for hard spring HRS wheat in Minneapolis.

In Ukraine, prices for food wheat rose to a record $305-307/ton or UAH 9150-9200/ton amid a shortage of supplies and logistics problems.