On the wheat market decline amid uncertainty

2019-01-16 12:25:12
Machine translation
On the wheat market decline amid uncertainty

wheat Prices on the stock exchanges yesterday declined due to the lack of progress in trade negotiations, the U.S. and China. This information had a negative impact on the markets of soybeans and corn, and pulled down the neighboring wheat quotations.

 

Weather conditions for winter wheat crops in the Northern hemisphere are mostly favourable and do not cause concern for the next harvest, which puts pressure on prices of the new harvest. But the main factor of pressure on prices remain, the pace of wheat exports from the US and the EU, which did not show activity.

 

Prices for U.S. wheat is 10-12 dollars per ton cheaper than Russian on FOB basis, but it has not yet attracted buyers. The ongoing rumors of administrative restrictions on export of wheat from Russia has not yet find confirmation, but once the message of the newspaper "Kommersant", the Ministry of agriculture called for grain exporters to slow shipments in the second half of the season, about it they were told three sources in the grain market, which said that appeals are informal.

 

Financial and commodity markets of Europe is now under pressure from yesterday's decision of the Parliament of great Britain to not support Breakst and the possible resignation of the government .

 

the March wheat prices in Paris yesterday fell by €0.75 to 203,00 €/ton or 231,44 $/ton. The depreciation of the Euro to 1.14 euros to the dollar leads to increase the export attractiveness of European wheat on the world market.

 

Procurement of the Ministry of industry and trade of Jordan at the tender January 15 to 60 thousand tons of hard milling wheat presumably of European descent for the price 269,95$/t C &F for delivery in the port of Aqaba in the 1st half of March has not had a significant support to prices, although the price increased by $ 2.5 compared to the previous tender in December.

 

on Tuesday, U.S. wheat market continued speculative reduction. Weekly tender in Japan, where it was purchased 111,9 thousand tons of wheat including 53 tons of American origin, is not particularly supported the market expects active sales to world markets .

 

March quotes of the American wheat have decreased:

 

  • soft wheat SRW in Chicago by $1,19 to 187,76 $/ton
  • hard wheat HRW in Kansas city for $1.29 to 182,06 $/ton
  • hard wheat HRS in Minneapolis by $1.29 to 206,50 $/ton

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