The Declaration of a pandemic continues to lower wheat prices

2020-03-12 12:00:59
Machine translation
The Declaration of a pandemic continues to lower wheat prices

the Introduction of quarantine in many countries of the world continue to lower the price of wheat, therefore, importers are actively purchasing wheat old and new crop at competitive prices.

 

Yesterday who assessed the distribution coronavirus Covid-19, as a global pandemic that directly affected stock markets, causing the price of oil fell by 4.3% to 34.1 $/bbl, stock indexes in the USA – 4,3-5,3%, followed by accelerated declines in the markets of agricultural products.

 

After two days of speculative growth of stock exchange in Chicago on Wednesday turned down. Speculative investors hold the market because they fear that the pandemic coronavirus will trigger a global recession.

 

the Wheat market is not even supported by the data weekly report USDA, according to which the number of crops in good or excellent condition in Kansas for the week increased by 4% to 47%, while in Texas decreased by 105% to 26%. The moisture reserves in the topsoil in Kansas for the week decreased by half.

 

Experts are expecting weekly export sales of wheat harvest in 2019 the US will be reduced to 200-600 thousand tons.

 

the May wheat futures in the U.S. fell:

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at 3.40 $/t to 160,02 $/t for solid winter HRW wheat in Kansas city

2.48 $/t to 188,12 $/t on a firm spring HRS wheat in Minneapolis.

  • 3.49 $/t to 188,40 $/t for SRW soft winter-wheat in Chicago

 

the results of the procurement tenders and confirmed the decrease in wheat prices in the physical markets.

 

Turkish news Agency TMO March 11, acquired at the tender 305 thousand tons chervonoarmyska soft wheat with protein 13.5% and delivery March 20-April 7 225,1 price $/t C&F, which is 6.25 $/t lower than at the auction on February 18.

 

Tunisian Agency ODC yesterday got on the tender of 125 thousand tons of soft milling (presumably French) of wheat with protein 11.5% and the delivery in may-June at a price 216,8 $/t C&F, which at 12 $/t lower than at the auction on March 5.

 

However, the results of the tenders and the increased forecast from FranceAgrimer were dashed with news of the introduction of quarantine in many countries.

 

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  • the May futures for milling wheat on MATIF fell by 0.75 €/ton to 6-month low 177,25 €/t or 200,69 $/t

 

On Euronext investors second week reduce long positions in wheat futures.

 

In Ukraine the purchase price of wheat this week fell in the port 7-10 $/t 187-190 up to $/t

 

the bid Prices for Russian wheat with protein 12.5% down to 205-206 $/t FOB, while the bid prices exceed 210 $/MT FOB.

 

the devaluation of the ruble will contribute to increasing purchase prices and boost exports of Russian wheat in the near future. In addition, manufacturers conventionally increase the wheat supply of the old crop if the winter crops in the spring are in good condition.

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