The wheat market is a speculative price adjustment
After a 4-day significant fall of wheat prices on Tuesday, the investors moved to speculative purchases because they have decided that the market is oversold.
However, the growth of quotations of restricted factor in a record world wheat supply and a slight improvement of the crops of hard winter wheat.
the May futures for U.S. wheat has increased:
0,92 $/t to 176,55 $/t for solid winter HRW wheat in Kansas city
2.11 $/t to 225,05 $/t on a firm spring HRS wheat in Minneapolis.
- 1.47 $/t to 171,31 $/t for SRW soft winter-wheat in Chicago
the Market for French wheat after falling to 2-week low on Tuesday, rose slightly supported stock exchanges in Chicago and thanks to tender in Tunisia and the intentions of Egypt to increase wheat imports in the new season.
- May futures milling wheat on MATIF rose by 0.75 €/t to 164,5 €/t (202,24 $/t).
Tunisia at yesterday's tender purchased 125 thousand tons of wheat for delivery during may 15 – July 15 at a price 217,85 $/t C&F, exceed the purchase price of the previous trading session.
According to the draft budget of Egypt, in 2018/19 MRO country plans to buy in the domestic market of at least 4 million tons of wheat and import 7 million tons at an average price of $220/MT C&F, although a week ago the Minister of supply was estimated the volume of imports of 6 million tons.