Wheat in the US is cheaper and drags European stock exchanges
Fourth trading day in a row in Chicago observed a drop in prices of soft wheat.
pressures on prices remain unchanged. First of all, it is the successful harvesting of winter wheat. As of 12 June there were collected 11 % of the crop, while a year ago the figure was 9 %.
traders take into account the record volume of world ending stocks of wheat in the current season.
And even the neighboring corn market, which is growing steadily due to adverse weather conditions, could not support wheat quotations.
Prices for U.S. wheat for July fell agreements:
- the in Chicago at 2.30 $/tonne to 178,20 $/tones of soft wheat SRW,
- the in Kansas city 0.83 $/tonne to 168,47 $/tone for hard wheat HRW,
- the in Minneapolis by 2.76 $/tonne to 195,75 $/tones hard wheat HRS.
After a brief uptrend, the prices on Monday, since Tuesday European equities follow the dynamics of U.S. wheat fields.
Investors and traders concerned about the condition of the winter wheat crop. Already became clear that the main problem of the season will be no reduction of yield due to adverse weather, which only warmed up the market, and a significant deterioration in grain quality.
Prices for milling wheat on MATIF, the French at the September agreements fell by 3.75 Euro/tonne to € 165,50/tone or 185,46 $/ton.