The wheat exchanges started the week plummeting
a New report by the USDA has led to a sharp drop in prices on the Paris stock exchange.
- the May futures for milling wheat on Euronext fell by 2.5 €/t to the lowest since June 2018 level - 181,25 €/t or 204,06 $/t
the Experts at the USDA increased the forecast of wheat exports from the EU of 1 million tonnes to 23 million tonnes, but traders understand that to perform it can only be significantly lowering prices. Now, the EU exported only 12,531 million tonnes of soft wheat, which is 11% inferior to the corresponding indicators 2017/18 MG. Export growth improved to 5 weeks in a row, and last week the backlog from last year has decreased on 5%.
After the European traders, U.S. investors moved to the active sales of futures, with the result that prices fell to a low of 13 months. They did not support the increase in exports of US wheat for the week by 21% to 592 thousand tons, and delay sowing of spring wheat in the Northern plains due to unfavorable weather.
May futures in the U.S. fell:
3.86 $/t to 154,41 $/t for solid winter HRW wheat in Kansas city
at 1.10 $/t to 200,71 $/t on a firm spring HRS wheat in Minneapolis.
- by 4.04 $/t to 157,44 $/t for SRW soft winter-wheat in Chicago
the Decline in stock prices puts pressure on physical markets that intensifying demand from importers.
last week, Iraq bought 100 thousand tons of wheat produced in the USA or Canada, Syria purchased 200 thousand MT of black sea wheat, Algeria – 300 thousand tons of hard wheat and plans to buy another 50 thousand tons of soft wheat this week.
Turkey has announced a tender for purchase of 300 thousand tons of wheat, the high chances of winning which is the black sea wheat.
Now the price of black sea wheat with protein of 12.5% dropped to 225 $/t FOB, with a protein of 11.5% - 220 $/t FOB, forage – 215 $/ton FOB for shipments in April. The prices for wheat of new crop with delivery in August-September at 30-35 $/t below.