The snow and warming reduce wheat prices USA
Speculative growth of wheat market in the United States in the beginning of the week on Tuesday gave way to a speculative fall. Under pressure from a record world offers traders moved to technical sales.
However, the main factor in the falling prices of steel precipitation in areas growing hard winter wheat in the form of snow and rain, which replenished the water reserves in the soil. Monitoring USDA showed that under little influence of drought remain 44% of wheat, against 23% a year ago. A severe drought is observed in 16% of crops compared to 6% a year ago.
the Number of crops of spring wheat under little influence of drought has decreased from 47% in December to 41% in January, but last year the rate was 0%.
the rainfall in February will be decisive for the future harvest.
March U.S. wheat futures fell:
1.93 $/t to 155,51 $/t for solid winter HRW wheat in Kansas city.
0,92 $/t to 222, 11 $/t on a firm spring HRS wheat in Minneapolis.
- 1.56 $/t to 154,87 $/t for SRW soft winter-wheat in Chicago
European stocks on Tuesday was under pressure the Euro, which rose to 1,233 €/$ and reached a three-year high.
- March delivery milling wheat on MATIF fell by 0.25 €/MT to 155.5 €/t (191,08 $/t).
the Concern of freezing weather in Ukraine and Russia due to the lack of a sufficient layer of snow is also supported prices. However, now the frosts are retreating, and the recent snow have replenished the water reserves in the soil.
the experts of the IGC in the January balance increased the forecast of grain exports from Russia to 1.7 million tonnes up from 43.9 million tons, and for Ukraine was reduced by 1.5 million tons to 41 million tons.
Ministry of agriculture of the Russian Federation reports that in 2017/18 MG as of 17 January, the export of grain in comparison with the corresponding period last MG increased by 36.4% to 29 mln t, in particular, wheat exports – by 35.3% to 22.6 million tonnes, with Active export will continue to put pressure on wheat prices, especially in spring, when Russia will increase the supply volume.