The price of wheat crushes record harvest in Argentina
On Friday, the fifth day in a row, trades in Chicago ended lower quotations of wheat futures. In the past five trading days, the wheat in Chicago has lost 5,69 $/ton.
the Main factor in the falling prices was the increase in world supply. In the season 2016/17 MG Argentina will gather 15.7 million tons of wheat, which is by 38.9% over last year. Production growth will be due to the increase in acreage of 19.7% to 5.23 million ha and improve crop yields.
the Exports of Argentine wheat in December can exceed 1 million tons, which will be a record figure for the month since December 2007.
the European Union raised its forecast for the soft wheat crop. Russia may increase the estimate of wheat production by 2 million tons.
in addition, U.S. wheat growing areas, the air temperature was lower than expected, which weakened the threat of freezing of crops.
March wheat prices have declined:
- 1.29 $/tonne to 144,58 $/tones of soft wheat SRW in Chicago
- 0.64 $/ton to 149,27 $/tone for hard wheat HRW in Kansas city
- 1.56 $/tonne to 195,01 $/tone for hard spring wheat HRS in Minneapolis.
Price of wheat on Euronext also declined to 165,75 Euro/tone.
In Ukraine, traders are actively buying wheat, trying to complete contracts before the start of the Christmas holidays, so the prices remain the same:
- 2 wheat 160-163 $/t or 4850-4950 UAH/t,
- 3 wheat 158-161 $/t or 4800-4950 UAH/t,
- feed 152-154 $/t or 4500-4700 UAH/t