The increased demand increases the price for black sea wheat

2020-09-08 12:08:27
Machine translation
The increased demand increases the price for black sea wheat

Despite the increase in production forecasts for Russia and Australia, world wheat prices remain relatively high. This contributes to the stocks of black sea wheat, which is the cheapest on the market.

 

the Market awaits the release of the September USDA report, which can raise the forecast of world wheat production, but until the next execution of contracts traders are forced to raise prices against the background of containment sales by producers and strong demand from importers.

 

the Australian Agency ABARES has increased in comparison with the assessment of the June forecast of wheat production in 2020/21 MG from 26.7 to 29.9 million tonnes, which will become the second figure after the record 35,13 million tonnes of the 2016/17 season. In August, USDA estimated the crop at 26 million tons and other analysts at 31-34 million tons.

 

In Russia as of September 7, with 24 million hectares or 81.6% of the area harvested 77,9 million tons of wheat with a yield of 3.24 t/ha. This indicates that the wheat harvest may exceed 84-85 million tonnes, while the USDA in August estimated it at 78 million tons.

 

After the latest Egyptian tender, where the price rose to 225 $/t FOB black sea for September delivery of wheat went up to 214-216 $/t FOB, and tenders next week could further support prices.

 

In Ukraine, purchasing prices for milling wheat at the port rose to 204-208 $/t or 6750-6850 UAH/t as traders need to close the September contracts.

 

Asian buyers almost no interest in the black sea of wheat, waiting to market the Australian crop. Recently, the Asian animal feed manufacturer has acquired the Australian wheat at a price of 255 $/t CFR, which is much cheaper than to buy the black sea.

 

State Agency of Pakistan TSR announced a tender for the purchase of 175-200 thousand tons of wheat for delivery before year-end.

 

Turkish news Agency TMO next week will hold a tender for the purchase of 500 thousand tons of wheat with protein 12.5% and 13.5% with delivery from 23 September to 12 October, which will also support prices for black sea wheat.

 

Last week, the EU exported only 69,8 thousand tons of wheat (mainly from Latvia), and from the beginning of the season to 2.9 million tons, which is 44% below the rate last year. This suggests that buyers are not interested in French wheat for high prices on the background of the strong Euro.

 

Yesterday in the US celebrated Labor Day, so the markets are not working, so the reaction to the new forecasts for Russia and Australia will be known today.

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