Capacity-proposals to cool the speculative growth of prices for wheat

2017-08-04 12:36:02
Machine translation
Capacity-proposals to cool the speculative growth of prices for wheat

a Speculative rise in the price of wheat futures during the past month was caused by news about the drought and decrease in yield. However, stock traders did not take into account factors in the physical market when the supply is increasing and buyers are in no hurry to buy grain at a high price.


the Weekly sales of U.S. wheat was the lowest for the last season level and was only at 145.5 thousand tons.


Precipitation in areas growing spring wheat reduce tensions on the market of hard wheat


September quotes of the American wheat have decreased:

  • soft wheat SRW in Chicago by 1.09 $/t to 168,19 $/t,
  • for hard wheat HRW in Kansas city by 1.73 $/t to 168,93 $/t,
  • on a hard spring wheat HRS in Minneapolis by 3.29 $/ton to 262,07 $/t


the Export of wheat from Ukraine in the first month of the new season amounted to 891 thousand tonnes, which is slightly less than last year.


According to the operative data of the Federal customs service of Russia as of 26 July from the beginning of the 2017/18 MG the volume of Russian exports of wheat amounted to 791 thousand tons, which is by 36.7% compared to export of the same period in 2016.


the Reduction rate of exports is also associated with delayed harvesting of wheat at 1-2 weeks compared to last year. However, sales from manufacturers is not too active because they hope for further price growth. However, the prices of demand for wheat protein 12,5% continue to decline and is now down to the level of 180-190 $/t FOB Black sea, and wheat protein 11.5% - up to 175-180 $/t FOB.

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