The uncertainty of the harvest in Russia raises the world price of wheat
heavy rainfall in the Central part of Russia according to weather forecasts will continue until next week, which makes it difficult to advance the harvest of spring wheat and will probably lead to the loss of wheat quality and to further reduce gross yield. As of 19 July, Russia harvested 27.6 million ton mostly winter wheat from the area of 7.2 million hectares with a yield of 3.82 t/ha (2017 – 4,58 t/ha). This leads to rapid growth of prices for Russian wheat with protein of 12.5% which is offered at 208$/t c August delivery and 215$/t c October delivery and 218$/MT c for November delivery.
In Ukraine, also continued precipitation in the Central and Western parts, leading to delayed harvest and reduced quality of wheat harvested after the rains. Prices for wheat with 12.5% protein increased by 2-3 dollar per 184-185$/t delivery port in July and 186-187$/t in August-September.
September quotations of wheat on Euronext rose by €2.00 to 188,00 €/ton, or 219,34 $/ton against decrease in harvest forecasts in Germany and other European countries.
Traders say the supply shortage of wheat on the physical market, even for export. Farmers hold the sale until the situation is clarified with the volume of European production and quality of grain.
Thursday wheat million went to the European prices, which are rising amid lower crop forecasts in the EU and Russia.
September quotes of the American wheat have risen:
- soft wheat SRW in Chicago by $3.58 to 185,27 $/ton
- hard wheat HRW in Kansas city for $3.21 m to 182,43 $/ton
- hard wheat HRS in Minneapolis by $3.21 m to 197,22 $/ton