Distribution coronavirus lowers the price of wheat
the Panic on the US exchanges, due to the spread of coronavirus outside of China, yesterday led to the fall of stock indices, oil prices and other agricultural products. The leader of the fall was the wheat in Chicago, which is the day have fallen by 3% to the lowest December level.
Traders can not assess the real impact coronavirus on the world demand for wheat, compared with the impact on oil consumption, related to reduction of transportation of passengers and cargo.
Monday, the wheat exchange, the United States completed a sharp collapse of prices due to increased pessimism about the consequences of the spread of the virus Covid-19 for the world economy. Compounding the situation is the strengthening of the dollar.
the May wheat futures in the U.S. fell:
5.97 $/t to 168,74 $/t for solid winter HRW wheat in Kansas city
3.86 $/t to 193,91 $/t on a firm spring HRS wheat in Minneapolis.
- 6.34 $/t to 196,48 $/t for SRW soft winter-wheat in Chicago
the French wheat Market yesterday fell after the Chicago world's stock and commodity markets. Evidence that Saudi Arabia purchased in the tender mainly European hard wheat, are unable to support prices. For the week, the EU exported only 157,7 thousand tons of wheat, however, since the beginning of the season already exported 18.7 million tonnes, which is 64% higher than the corresponding figure last year.
- the May futures for milling wheat on MATIF fell 3.25 €/t to 189,5 €/t or 208,79 $/t
In Russia yesterday was a holiday, so prices for wheat with protein of 12.5% remained at 217-218 $/t FOB. The collapse of stock prices will increase pressure on the quotes of the black sea wheat.
Ukraine wheat prices fell yesterday below the psychological level of 200 $/t. Traders in the port offer for wheat with protein 11,5-12,5% 198-200 $/t or 5730-5880 UAH/t and forage – 196-197 $/t or 5500-5650 UAH/t
the bid Price is already at 5-7 $/t lower than the bid prices on FOB basis, but buyers expect further declines.