The collapse of wheat prices on the stock exchanges

Yesterday the price of wheat for delivery in may on the European and American markets fell 1.5% and 4%, respectively.

the Main cause of the collapse of prices was data on the condition of the winter wheat crop in the United States and the forecast of rain in the major exporting countries of wheat. On Monday evening, the Ministry of agriculture reported that the condition of winter wheat in major producing States has not changed compared to the previous week as the percentage of crop in good or excellent condition remained at the level of 60%, which is the best indicator for half a century and almost twice better than a year ago.

the May futures on winter wheat in the US fell to a two month level during trading, but then recovered slightly and remained at least a month..

the May quotes of the American wheat have decreased:

• soft wheat SRW in Chicago for $5,33 to 163,51 $/ton
• hard wheat HRW in Kansas city for $3,77 to 153,22 $/ton
• hard wheat HRS in Minneapolis by $1.65 to 193,73 $/ton

the Delay of spring wheat in the United States is growing, and according to NASS planted only 2% compared to 13% last year on the same date. This gave support to the price of spring wheat on the exchange in Minneapolis.

the Growth of production forecasts in the EU in the new season continues even at prices of old and new crop. Association of farmers ' cooperatives of Germany (DRV) boosted its forecast of wheat production in Germany in 2019 to 24.4 million tons, which is by 20.6% more than in the previous year of drought.

activation of the importers for the purchase of wheat supported the prices of European wheat and softened the fall.

the May futures on the stock exchange in Paris the day lost of 2.75 euros, and in September of 3.25 euros and traded at the level 186,25 €/t, or 210,44 $/t and 173,75 €/t, or 196,4 $/t respectively.

Tuesday was declared three new tenders for wheat:

Taiwan is looking for 109 175 thousand tons of soft wheat from the United States; the

• Morocco looking for 363,636 thousand tonnes of European wheat in the framework of annual tariff quotas;
• Japan seeks 97,175 thousand tons of wheat from Australia, Canada and the United States.

Jordan for another tender for wheat received only one offer from the market and cancelled the tender.

the price of Russian wheat old crop remain high despite the reduction proposals. According to the rating Agency Agricensus prices SRT Russian ports of wheat protein 12,5% 207-209$/t

Prices for Ukrainian wheat protein 12,5% decreased to 203-204 $/t CPT port.