Under pressure from fundamental factors, the price of wheat started to decline
Global prices of wheat declined slightly amid a good rate of sowing and favourable weather in major producing countries. In Chicago speculators the second day in a row record profits and hold sales after prices reached 3-month high on data about the delay in the sowing of spring through the powerful precipitation in the United States.
the July wheat futures in the U.S. fell:
1.38 $/t to 158,82 $/t for solid winter HRW wheat in Kansas city.
- to 2.20 $/t to 173,70 $/t for SRW soft winter-wheat in Chicago
At the same time increased by 0.28 $/t to 199,79 $/t solid spring HRS wheat in Minneapolis.
Precipitation on the territory of the EU has improved the condition of crops and prospects for the next harvest.
- the August wheat futures on Euronext yesterday fell 1.25 €/t 175 €/t or 196,57 $/t
the Philippine Private customers in direct negotiations purchased 45 t feed wheat (presumably Australian) with delivery in the 1st half of September at a price of 240-245 USD/MT C&F.
black sea market mainly sells wheat of the new harvest. For delivery in July-August offer 190-192 $/t FOB for protein 12.5%, and 179-180 $/t FOB for the protein of 11.5%.
the Pace of planting in Ukraine and Russia is much higher than last year.
In Ukraine as of may 22 spring grains and leguminous crops sown 6.7 million hectares or 93% of the planned areas, in particular:
the early grain and 2.1 million hectares or 97%.
- corn and 4.4 million hectares or 95%
in addition, sunflower sown 5.3 million hectares or 93% of soybeans and 1.3 million hectares or 71% of the plan.
In Russia on a specified date spring crops were sown 38.5 million hectares or 73,7% of the forecast, in particular:
barley – 6.6 mln ha, or 84.4 per cent,
corn – 2.4 mln ha, or 93,4%.
- wheat – 7.8 million hectares, or 64.1%, and
last year on this date were sown of 30.4 million hectares, including wheat – 5.2 million hectares, barley – 5.7 million hectares, corn – 2.3 million hectares.
in addition, the sunflower planted 7.1 million hectares or for 90.9% of the plan (2018 – 5.7 mln ha), soybeans – 1.8 million hectares or 60.2% (in 2018 – 1.5 million ha), spring rapeseed – 1.1 mln ha or 80.1 percent (in 2018 738,9 thousand hectares).
According to the Ministry of agriculture of Kazakhstan, as of 22 may, spring crops were sown of 5.93 million ha, or 41.6 per cent of the forecast, whereas last year the figure was 29.4 per cent areas.