The results of tenders in Algeria and Egypt resumed the growth of wheat prices
This week, the main importers of European and Black Sea wheat purchased wheat at tenders, which sharply increased in prices. This supported wheat prices on stock exchanges and physical markets, which have declined slightly in the past two days.
The state agency of Algeria (OAIS) at the tender on August 17 purchased 250 thousand tons of wheat for delivery on September 16-30 at a price of 3 348-351/ton C&F, which is 2 28-30/ton higher than at the previous auction on August 4. It is worth noting that the OAIS reduced the requirements for in-kind indicators, which allowed French wheat to take part in the auction, the quality of which has greatly deteriorated due to prolonged precipitation.
On August 18, the Egyptian state operator GASC purchased 180 thousand tons of Romanian and Ukrainian wheat at a tender for delivery on October 5-15 at an average price of F 296.65/ton FOB or C 331.58/ton CFR, which is 3 35.16/ton and.37.84/ton higher than at the previous auction on August 2. Supply prices for Russian wheat were 2 20/ton higher than for Romanian and Ukrainian wheat.
Despite a slight decline in stock prices, the offer prices of Black Sea wheat remained at 2 285-295/ton FOB, as traders were waiting for the results of the Egyptian tender in order to understand whether importers are ready to buy food wheat at high prices in the new season.
The prospects for the wheat harvest in Russia, which became the driver of price growth in August, remain uncertain, as the Ministry of Agriculture of the Russian Federation has stopped publishing daily data on the progress of harvesting since August 6. According to the latest official data, as of August 11, 56.3 million tons of wheat were threshed in Russia with a yield of 3.32 t/ha (last year it was 59.8 million tons and 3.7 t/ha, respectively).
After a previous drop, Black Sea wheat futures on the Chicago Stock Exchange rose again yesterday:
- September-by 3 3.5 / ton to 2 296.75 / ton,
- December-by 2 2.25/ton to.310 / ton.
Wheat exchanges in the United States, in the absence of support factors, ended yesterday's trading with a slight increase.
At the same time, European wheat prices rose again as a result of tenders in Algeria and Egypt and the depreciation of the euro against the dollar to 1 1.1678/€.
- On the Paris Stock Exchange, September wheat flour futures rose by €8.5/ton to €254.25/ton or.296.9/ton.
But producers stopped sales in anticipation of a recovery in prices to the level of 8500-8700 UAH/ton with delivery to the port, especially given the low quality of food wheat, the share of which this year will be 40-60% compared to last year's 80%.