The results of the tenders in Egypt and Tunisia put pressure on wheat prices
Wheat market yesterday came under pressure from tenders in Egypt and Tunisia.
Tunisia bought 100 TMT of wheat with protein 11.5% from July shipment-August to CFR Tunisia for the price of 216,53 $/t, which at $10/t lower than the purchase price of the previous tender.
Egypt, which is primarily buys wheat of the new harvest on the domestic market, also unexpectedly announced a tender and bought it for 60 thousand tons of Ukrainian wheat with protein 12.5% with delivery in June at a price 234,95 $/t CFR, which exceeds the purchase price at the previous tender March and meets 219,9 $/t FOB Odesa.
this season GASC has purchased 6.5 million tonnes of wheat, of which the Russian share is 80%.
Followed by falling prices in Chicago dropped and the market for wheat.
- Futures milling wheat on MATIF fell by 0.25 €/t to 170,25 €/t (201,32 $/t).
Even the weakening of the Euro to the lowest this year level 1,1838 €/$ not supported prices. And tenders in Egypt and Tunisia showed low competitiveness of French wheat.
After 4-day of falling prices, investors have started to close short positions and carry out speculative buying, so soft wheat in Chicago rose.
Warm and dry weather after the recent rain in the Midwest will speed up sowing and emergence. Spring wheat sown 58% of the planned areas against 75% last year and 67% average. Shoots were obtained by 14% against 37% in 2017 and 36% on average.
July futures for U.S. wheat:
remained unchanged at 187,3 $/t for solid winter HRW wheat in Kansas city
increased by 1.74 $/t to 222,75 $/t on a firm spring HRS wheat in Minneapolis.
- increased by 0.83 $/t to 181,33 $/t for SRW soft winter-wheat in Chicago