Speculators are trying to destabilize the wheat market
Friday's spike in wheat prices in Chicago due to news about possible restriction of export of wheat from Russia, on Monday gave way to a drop in prices up to 3% on the data about the low pace of wheat exports from the United States. For the week the exports decreased by 29.14% to 345,375 thousand tons, which is by 41.72 per cent behind the corresponding period last year.
Traders fear that the threat of imposing restrictions, Russia already can significantly increase the export of wheat. The market remains under pressure of new crop wheat. In the US winter wheat collected on 97% of squares, and spring – 605 vs 44% on average on that date.
the September wheat futures in the U.S. fell:
by 6.52 $/t to 201,08 $/t for solid winter HRW wheat in Kansas city
by 5.24 $/t to 218,35 $/t on a firm spring HRS wheat in Minneapolis.
- 6.71 $/ton to 199,24 $/t for SRW soft winter-wheat in Chicago
the Pace of wheat exports for the week decreased in Ukraine by 79% to 109 thousand tons, in Russia – by 24% to 485 thousand tonnes For the low export growth in domestic ports on the terminal there was a shortage of containers, which led to a decline in demand for wheat.
wheat Exports from the EU remains very low and decreased to 132,1 million tonnes, which is 40% lower than the level of last year.
- due to the low demand futures for milling wheat in Paris fell by 2.5 €/t to 209 €/t, however, due to the strengthening of the Euro price in dollars remained at the level 240,9 $/t