After the speculative growth of prices for wheat turned down

After skyrocketing prices for wheat on world markets last week caused a sharp increase in neighboring markets of soybeans and corn, yesterday, under pressure from the increasing offers of cheap Russian wheat and low demand from importers quotes turned down.

As of August 18 at Russia with 17.5 million ha or 59.5% of the space produced 63.6 million tonnes of wheat with a yield of 3.63 t/ha, which gives hope for obtaining a harvest at the level of 80-82 million tonnes. Weather in the East contributes to the development of spring wheat, which in the beginning of the season suffered from drought, so losses will be lower than expected.

bid Prices of Russian wheat protein 12,5% continue to fall. According to the Agency SovEcon and IKAR for a week, they decreased by 4-5 $/t to 200-201 $/t FOB for shipments in August-September, whereas the demand price of 5-6 $/t below.

After train 3 sessions September wheat futures in Chicago rose due to speculators by 9.28 $/ton, yesterday began the technical price adjustment.

the September wheat futures in the U.S. fell:

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by 2.66 $/t to 157,99 $/t for solid winter HRW wheat in Kansas city.

• 3.31 $/t to 186,47 $/t for SRW soft winter-wheat in Chicago

has Risen by 0.74 $/t to 186,29 $/t hard spring HRS wheat in Minneapolis.

European wheat for three days on speculative factors rose by 7.25 €/t to almost one-month high after Chicago. However, further upside was limited by such fundamental factors as the increase in offers, despite the reduction of the yield in France and the strengthening of the Euro against the dollar.

Yesterday the German selhozartel DRV lowered the forecast of wheat harvest in the country to 21 million tonnes, which is 7% lower than in 2019

the result of the tender in Algeria also significantly affect the prices of European wheat.

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• September futures milling wheat on MATIF fell by 1.75 €/t to month high of 183 €/t or 218,43 $/t

the Philippines and Thailand on August 19-20, will hold a tender for the purchase of 600 thousand tons of feed wheat, presumably of Australian or us production, with delivery in October-November, which will be the price indicators for market.

In Ukraine, purchasing prices for milling wheat remain at a low level 185-186 $/t or 6050-6100 UAH/t at the port, which is 400-500 UAH/t lower than the level of the prices of July and didn't meet the manufacturers.

Traders to complete the August contract will soon be forced to raise prices to increase sales, despite low export prices and poor demand for shipments in September.