In the wheat markets continues speculative growth
on Wednesday, a speculative fall in the price of wheat has changed speculative growth through the holding of technical buying and short covering by investors.
Traders again drew attention to the drought in Australia and heavy rains in Argentina, but somehow forgot about the increase in forecasts wheat production in Russia and Canada.
Experts have lowered expectations for the weekly export sales of wheat in the United States up to 300-500 thousand tons, but speculators have not considered the demand for American grain.
December quotations of wheat in the U.S.:
- soft wheat SRW in Chicago by 2.48 $/t to 165,25 $/t,
- for hard wheat HRW in Kansas city by 2.21 $/ton to 164,61 $/t
- hard spring wheat HRS in Minneapolis by 1.56 $/t to 228,36 $/t
In Paris, the rise in price of wheat on Wednesday also was purely speculative. Tried to heat up the market investors who are associated with industrial processing as they believe the current level of stock prices is very interesting.
- December futures milling wheat on MATIF also increased by 1 €/t to 163 €/t (193,68 $/t).
In Ukraine, wheat prices continued to rise due to increased export demand. Traders are trying to attract large quantities of wheat before the maize harvest, as we understand that in the future, producers are busy harvesting, elevators and reception and shipment of corn.
Increase in railway fare from October 1, 22.5% have created more demand for cars than further contributing to their deficit. Since the beginning of September on Ukrainian Railways, a system of automatic distribution of cars, which further complicated logistics as forwarding agents haven't got used to the new system.