Acceleration of sowing in Russia and precipitation in the US and EU lower wheat prices

2021-05-20 12:00:58
Machine translation
Acceleration of sowing in Russia and precipitation in the US and EU lower wheat prices

< span style="font-size:14px;">the speculative impact on wheat quotes on global stock exchanges is decreasing, and markets are returning to normal price levels under pressure from fundamental factors in the form of significant stocks and forecasts of a record harvest in the new season.

 

< span style="font-size:14px;" > a higher-than-expected winter wheat yield is pressing on the US stock exchange. According to the results of the crop tour, in the state of Kansas, which is its main producer, wheat yields may exceed last year's figure by 26%.

 

< span style="font-size:14px;">July US futures fell:< / span> < / p>

  • < li> < span style = " font-size: 14px;" > by 6 6.89 / t to a near-monthly low of 2 249.58 / t for soft winter SRW wheat in Chicago,< / span> < / li>
  • < span style= " font-size: 14px;" > by 5 5.14/t to до 232.86 / t for hard winter HRW wheat in Kansas City,< / span> < / li>
  • < span style="font-size:14px;" > by 6 6.06/t to.256.28/t for hard spring hrs wheat in Minneapolis. 

 

< span style="font-size:14px;" > on the Euronext exchange, the net long position on wheat flour contracts decreased by 21% over the week to a 4-week low of 114.8 thousand contracts. This confirms that traders do not expect a significant price change in the near future.

 

< span style="font-size:14px;">Coceral experts predict that in the new season the EU will increase soft wheat production by 10% compared to last year to 130.9 million tons due to an increase in sowing areas by 6% to 21.8 million hectares and yield by 4% to 6 t/ha.

 

  • < span style="font-size:14px;">September wheat flour futures on MATIF fell 4.25 € / t to 210.75 €/t or 257.64 € /t.< / span> < / li>

 

< span style="font-size:14px;" > in Russia, as of May 19, 7.5 million hectares or 59.3% of the planned area were sown with spring wheat, although 8.5 million hectares were sown a year ago. Wheat reserves among Russian farmers as of May 1 amounted to 6.6 million tons, which is 56% higher than last year's figure.

 

< span style= " font-size: 14px;">Black Sea wheat futures in Chicago fell in price:< / span> < / p>

  • < span style="font-size:14px;">July – by 7 7/T to 2 261/t,< / span> < / li>
  • August – by 6 6.25/t to 2 261.75/t. < / li>

 

< span style="font-size:14px;" > offer prices for Black Sea wheat of the old crop have decreased to 2 270-280/ton FOB, new crop – to.265-275/ton FOB, but buyers are holding back purchases in anticipation of further price cuts.

 

< span style = " font-size: 14px;">in Ukraine, purchase prices for wheat of the old and new crops fell to 2 240-245/ton or 7500-7700 UAH/ton for deliveries to the port in May – July, but producers are holding back sales due to the high level of corn prices in the port in the range of 2 270-275/ton.< / span> < / p>

 

< span style="font-size:14px;">favorable weather in the main exporting countries improves the prospects for the wheat harvest, which increases pressure on prices.

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