Wheat prices rebounded after falling, despite an improvement in the U.S. crop
US wheat prices are gradually recovering after falling 3-4% in late December, even as US crop conditions improve.
According to the US MSG, as of December 31, the number of crops in good or excellent condition increased compared to the end of November in Kansas from 36% to 43% (19% last year), Oklahoma - from 53% to 67% (38%), Texas - from 46% to 49%, South Dakota - from 52% to 54% (16% last year), but it decreased in North Dakota from 71% to 50% (48% last year).
March wheat futures rose yesterday:
- by 2.2% to $225.4/t - for soft winter SRW wheat in Chicago (-3.7% for the week),
- by 0.7% to $229.9/t - for hard winter HRW wheat in Kansas City (-2.7%).
- by 0.4% to $261.3/t - for hard spring HRS-wheat in Minneapolis (-2.5%),
- by 0.9% to €221.25/t or $247.3/t - for wheat on the Paris Euronext (-0.3%).
According to Reuters estimates, wheat stocks in India as of April 1 will exceed the buffer rate (7.46 million tons), although against the background of grain sales from the state reserve as of April 1, they decreased to a 7-year low of 16.47 million tons. From June 1 the government sold 5.8 million tons to stabilize prices.
In Ukraine, against the background of the appreciation of the dollar, the purchase prices for fodder wheat rose to UAH 6,400-6,500/t or $157-158/t with delivery to Black Sea ports, while the premium for food wheat is $20/t and more.
