Wheat quotes in anticipation of new tenders remain under pressure from an increase in offers

2021-07-27 12:05:50
Machine translation
Wheat quotes in anticipation of new tenders remain under pressure from an increase in offers

At the beginning of the week, wheat prices in different regions moved in different ways, but the main factor of pressure on the markets remains an increase in the supply of new crops, especially in the Black Sea region, which this season will again be the main supplier of wheat to the world market.

 

Egypt's GASC has announced a new tender for the purchase of wheat, which will increase competition between Romanian and Russian grain.

 

Turkish agency TMO has announced a tender for the purchase of 400 thousand tons of wheat, which will support prices for Russian wheat.

 

On US stock exchanges, wheat prices are declining under pressure from an accelerated harvest and a reduction in exports, even despite the deterioration of spring wheat crops.

 

Wheat exports from the United States for the week decreased by 10.3% to 478 tons, and since the beginning of the season (June 1) reached 3.345 million tons, which is 19% lower than last year's pace.

 

As of July 25, winter wheat in the United States is harvested on 84% of the area (81% on average), and spring wheat – on 3% of the area. The number of spring wheat crops in good or excellent condition for the week decreased by 2% to 9% compared to 70% a year ago.

 

September US futures fell:

  • by 2 2.57 / ton to Чикаго 248.75/ton for soft winter SRW wheat in Chicago,
  • by 2 2.57 / ton to H 234.79/ton for hard winter HRW wheat in Kansas City,
  • by 1 1.74/ton to.322.88 / ton for hard spring HRS wheat in Minneapolis.

 

According to the FranceAgriMer report of July 19, the number of soft wheat crops in good or excellent condition for the week decreased by 1% to 75%, while hard wheat remained at 66%.

 

Wheat export supplies from Black Sea ports are growing against the background of record wheat harvest forecasts in Romania and Bulgaria in 2021/22 MG at the level of 10.5-11 and 6.5-7 million tons, respectively, although the European Commission estimates them at 9.76 and 6 million tons, respectively.

 

  • September wheat flour futures for MATIF rose by €1/ton to €213/ton or € 251.55 / ton.

 

In Russia, as of July 26, 33 million tons of wheat with a yield of 3.54 t/ha were threshed from 9.3 million hectares. Against the background of lower duties and increased harvesting, wheat exports from the country doubled in a week to 600 thousand tons, and in general in the season reached 1 million tons, which is 38% lower than last year's pace.

 

Supply prices for Ukrainian and Russian wheat remain at F 245-250/ton FOB, but as offers grow, purchase prices decrease.

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