Wheat markets under the rule of the speculators
After five days of losses on Wednesday quotes of French wheat finally turned up. Factors while that is purely speculative. Fundamental reasons for growth, in addition, the expectations of a large harvest of grain in Russia in 2018 will be even more pressure on prices.
Optimism traders added Algerian tender which was won by the French (a large proportion) and Argentine wheat. Despite the original intention to buy a 330 thousand t in the end, the tender was purchased 570 thousand tons of milling wheat at a price 208,75-210,50 $/t C&F.
December futures milling wheat on the Paris MATIF rose by 2.25 €/t to 159 €/t (188,42 $/t).
Chicago continues to ignore the record volume of global supply and the poor performance of wheat exports from the United States. After the lows reached on Tuesday, the market is experiencing a speculative rebound.
Independent experts lowered expectations for weekly export sales of U.S. wheat by 20-30% to 250-450 thousand tons.
the December futures for U.S. wheat has increased:
1.47 $/t to 151,84 $/t for hard wheat HRW in Kansas city.
- 2.11 $/t to 153,03 $/ton, soft wheat SRW in Chicago
Hard spring wheat HRS in Minneapolis remained at the level of 221,74 $/t