The failure of the Egyptian tender pushes down Chicago
At the end of trading Wednesday quotes soft wheat on the Chicago exchange fell even more. The drop occurs the eighth trading day in a row. The fundamentals remain the same: a good harvest of wheat in the world and in the United States in particular.
Yesterday to pressure on market prices has added a new factor. International grain traders boycotted the procurement tender in Egypt after the Ministry of agriculture in this country and the state grain importer GASC has introduced new quality standards that prohibit the content of ergot is above 0%. Probably, for some time Egypt will face problems in the external procurement that will lead to even greater over-saturation of the world market unclaimed batches of wheat.
As of August 31, prices of American wheat had the kind of momentum:
- decreased by 0.83 $/tonne to 132,64 $/ton soft wheat SRW in Chicago
- rose 1.29 $/tonne to 136,41 $/tonne hard wheat HRW in Kansas city
- dropped by 1.84 $/tonne to 178,48 $/t hard spring wheat HRS in Minneapolis.
French wheat has also depreciated by 1.00 EUR/tonne to 154,75 EUR/tone or 172,58 $/ton.