The sharp deterioration of spring wheat crops in the United States continues to raise stock prices

Hot weather forecasts for next week in the United States and Canada remain the main drivers of global wheat price growth. A sharp deterioration in the state of spring wheat crops in the United States led to a new jump in quotations.

It is expected that in the next 7-10 days in North and South Dakota will again be dominated by heat 35-38 ^OhC without precipitation, which will continue to negatively affect the condition of spring crops, in particular wheat.

Precipitation in winter wheat growing regions in the United States delays its harvesting, so as of June 27, it was carried out on 33% of the area, compared with 39% a year ago and 40% on average for 5 years. According to the USDA'S NASS, the number of winter wheat crops in good or excellent condition decreased by 1% over the week to 48% (52% last year). At the same time, the condition of spring wheat crops due to a lack of precipitation for the week worsened by 7% to 20% compared to 69% last year.

Wheat exports from the United States for the week decreased by 48% to 285.6 thousand tons, which is 44% lower than last year's pace.

July futures rose yesterday:

• by 3 3.3 / ton to Чикаго 237.4/ton for soft winter SRW wheat in Chicago,
• by 6 6.52 / ton to H 227.4/ton for hard winter HRW wheat in Kansas City,
• by 7 7.35 / ton to.309.4 / ton for hard spring HRS wheat in Minneapolis.

Tomorrow, Statistics Canada will release a harvest forecast and data on wheat sowing areas, but traders do not expect significant adjustments.

Despite the jump in prices in Chicago, a successful tender in Egypt and a reduction in the forecast of the wheat harvest in the EU, European wheat rose very slightly yesterday.

• September wheat flour futures for MATIF rose by €1.5/ton to €203/ton or € 241.79 / ton.

The European Commission lowered its forecast for the EU wheat harvest from 126.2 to 125.8 million tons, which will exceed last year's 117.2 million tons.

The activity of importers contributes to higher prices.

Egyptian GASC yesterday purchased 180 thousand tons of Romanian wheat at a tender for delivery on August 25 – September 5 at a price of F 242.93/ton FOB, which is 1 11/ton lower than at the previous auction on May 24, when 240 thousand tons of Romanian wheat were purchased.

Ethiopia has announced a tender for the purchase of 400 thousand tons of random wheat, while Turkey plans to purchase 395 thousand tons of red-grained food wheat at the tender.

However, another defeat at the tender in Egypt of Ukrainian and Russian wheat, as well as high yields in the south of Russia, where harvesting began, increase pressure on prices.