The results of tenders in Algeria and Egypt gave wheat prices a new boost to growth

After the collapse in wheat prices on Tuesday, the market expected their further decline, but purchases of wheat at high prices at tenders in Algeria and Egypt gave quotes a new boost to growth.

Yesterday, the state-owned Egyptian operator GASC purchased only 60 thousand tons of Romanian wheat for delivery in January. At the same time, the purchase price increased by листопада 10/ton FOB to F 346.97/ton FOB and by 4 4.62/ton C&F to 3 371.97/ton C&F compared to the auction on November 1. Offers of Ukrainian and Russian wheat were only 1 1-3/ton FOB more expensive than Romanian wheat, but GASC limited the volume of purchases.

Yesterday there was unofficial information about the tender in Algeria, where the state agency OAIS purchased 800 thousand tons (with the planned 600 thousand tons) of flour wheat for delivery in December – January at a price of 3 382.5-384/ton of C&F, which is higher than at the previous auction. The easing of quality requirements has increased competition between Russian and European wheat in the traditional French market, so the purchased volume includes 250 thousand tons of Russian wheat.

• December wheat futures on Paris ' Euronext rose 6.5 €/ton yesterday to 295.5 €/ton or 3 334.66/ton, recouping the drop earlier in the week.

Such an increase in prices is still unclear, since according to traders, Algeria purchased Russian and Argentine wheat, while there was no information about the purchase of French wheat.

• December Black Sea wheat futures on the Chicago SWOT rose вчора 2/ton to 3 348.75/ton after a previous drop yesterday, and remain the most expensive on the world market.

In the US, wheat prices were recovering from the previous drop, despite forecasts of an increase in sowing areas next season.

According to IHS Markit estimates, in 2022/23 MG, wheat sown in the United States will grow from 46.7 to 49.37 million acres compared to the current season, including winter wheat – from 33.65 to 34.39 million acres, and spring wheat – from 11.42 to 13.03 million acres.

The Canadian Ministry of Agriculture believes that in 2022, wheat sowing areas will grow by 6% compared to 2021.

December US futures rose:

• by 4 4.4 / ton to Чикаго 302.1/ton for soft winter SRW wheat in Chicago,
• by 4 4.87 / ton to H 306.4/ton for hard winter HRW wheat in Kansas City,
• by 4 4.4/ton to.377.4 / ton for hard spring HRS wheat in Minneapolis.

The purchase of 220 thousand tons of feed wheat by the Philippine group of companies in India and Australia for delivery in February – April at a price of C 340/ton CFR will soon limit the growth of prices for Black Sea feed wheat and corn.

In Ukraine, purchase prices for food wheat rose in ports to a record 9500-9650 UAH/ton or 3 318-321/ton against the background of a shortage of supply and increased export demand, while prices for Russian wheat stopped at F 330-335/ton FOB.