Forecast dry and hot weather heats the wheat markets
Forecast dry and hot weather in Russia and Australia became the main driver of growth in the price of wheat exchanges. High temperatures in April and early may accelerated the development of winter wheat, so in Ukraine and Russia, the harvest will begin in 1-3 earlier than usual, and the quality of wheat will be lower.
the First results of the harvest of winter wheat in the southern United States indicate low yield due to prolonged drought.
the July wheat futures in the U.S.:
3,95 $/t to 198,32 $/t for solid winter HRW wheat in Kansas city
0.46 $/t to 219,82 $/t on a firm spring HRS wheat in Minneapolis.
- by 3.58 $/t to 190,97 $/t for SRW soft winter-wheat in Chicago
Gain dry events in the North and the East of Europe more and more traders are concerned. The forecast of wheat production for Germany was reduced by 7.8%, Poland – 8%.
- September futures milling wheat on MATIF fell by 0.5 €/t to 183 €/t (215,81 $/t).
in Recent years, speculative oscillations of the exchange in wheat prices took place against the backdrop of lower prices in the physical market, however, from 1 June the price of black sea wheat of the new crop began to grow and already approaching the level of prices for grain of the old crop, while previously the gap was 10-12 $/t
the price of wheat 12,5% new crop rose to 198-205 $/t FOB for shipments in July-August, whereas wheat old crop is offered at 208-210 $/t FOB, but the demand for June is almost absent.