Wheat markets finished the week speculative growth
on Thursday and Friday in the wheat markets of the US and Europe continued speculative growth of quotations, the only driver which remain low prices and prospects for increased exports of American grain.
last week, the Algerian Agency OAIC has purchased in the tender 590 thousand tons of milling wheat at a price of 200-200,75 $/t on a C&F. the majority of the wheat procured in France, which is the main supplier, but also was contracted wheat Baltic origin and hard winter wheat from the United States.
the September wheat prices in the United States within two days raised:
- soft wheat SRW in Chicago by 2.29 $/t to 150,46 $/t,
- for hard wheat HRW in Kansas city by 2.48 $/t to 148,63 $/t
- on a hard spring wheat HRS in Minneapolis by 4.13 $/t to 239,01 $/t
After Chicago turned up the EU market to the news about the delay of the harvest in Germany through a powerful rainfall that led to lower volumes and crop quality.
- September futures milling wheat on MATIF rose to 1.75 €/t to 155,25 €/t (185,09 $/t).
Rapid strengthening of the Euro against the dollar from 1.18 to 1,1944 €/$ today will put pressure on the price of European grain, which will lose the competition with the black sea wheat.
Ukraine is not very active sales of wheat were suspended over the long weekend on the occasion of Independence Day. Low procurement prices for wheat are not interested in producers who managed to realize rapeseed and barley at a good price and don't have any need for funds. The price of sunflower seed also promises to be high due to rise in price of sunflower oil, so producers will have the necessary resources and not be forced to sell wheat and corn at a low price. During the week, traders can slightly increase the price of wheat to attract the volumes needed for execution of previous agreements.