Precipitation in Russia lowered the price of wheat
Yesterday the world prices for wheat went down under pressure from fundamental factors: weak demand from customers and forecasts of improved weather conditions in Russia that will increase the next harvest.
In the black earth regions of Russia on Wednesday and Thursday will be precipitation at 10 mm, sometimes with snow, snow which reaches 2-7 see next week in the black sea region of the country where grown, many export wheat will be good rains.
the Market for French wheat falls behind Chicago. After the price spike on the eve of Easter, the speculators began to take profits and bearish. Up for auction is influenced by forecasts of weather forecasters which promise a reduction of drought in the affected regions, European countries as well as Ukraine and Russia.
wheat Exports from the EU rose last week to 665,9 thousand tons thanks to the active shipping from Poland and France. Since the beginning of the season, the EU exported 26.7 million tonnes of wheat, 68% higher than the corresponding figure last year.
Experts Franceagrimer increased the forecast of wheat exports from France this year by 0.5 million tonnes to 13.2 million tonnes.
- the May futures for milling wheat on MATIF fell by 2.25 €/t to 194,75 €/m or 211,94 $/t
May futures wheat in Chicago yesterday updated 4-week low, as investors spent massively speculative sales.
the May wheat futures in the U.S. fell:
1.56 $/t to 176,18 $/t for solid winter HRW wheat in Kansas city
by 2.57 $/ton to 188,86 $/t on a firm spring HRS wheat in Minneapolis.
- 3.12 $/t to 198,50 $/t for SRW soft winter-wheat in Chicago
against the background of falling prices of Egyptian operator GASC immediately after yesterday's failed tender announced today the tender for a minimum of 55-60 thousand tons of soft milling wheat supply may 21 – June 5.
GASC has changed the terms of payment and the delivery will be done by open letters of credit with immediate payment upon submission of pertinent documents for the shipment, while still practiced deferred payment for up to 180 dev, which added to the price of 5-6 $/t. it is Expected that the tender can win European wheat, which today can be cheaper than the Russian. In addition, there is a risk that by the beginning of June, the quota on grain exports from Russia could be exhausted.