Speculators lower prices for wheat
Speculative buying Tuesday in Chicago on Wednesday, has changed the speculative sales. In the absence of fundamental factors, market participants, conduct technical operations based on weather news from the regions of winter wheat production.
the Harvest and the sowing campaign in the United States slowed by the recent precipitation, but they replenished the soil moisture reserves for future harvest. Concern about the progress of the sowing campaign allowed traders in Chicago to raise the prices of contracts for the supply of soft wheat in December 2018 17% on the share price of supply in December 2017.
December quotations of wheat in the U.S. declined:
- soft wheat SRW in Chicago by 2.21 $/ton to 162,40 $/t,
- for hard wheat HRW in Kansas city by 2.11 $/t to 160,20 $/t,
- hard spring wheat HRS in Minneapolis by 0.83 $/t to 224,13 $/t
the Market for French wheat in the absence of important news focuses on the stock exchange in Chicago. Pessimistic traders adds a record crop of Russian wheat and its low price. At yesterday's Egyptian tender invited party of French wheat was at $11/tonne more expensive than Russian.
- December futures milling wheat on MATIF fell by €1/t to 166 €/t (195,19 $/t).
In Ukraine the growth of export price of wheat was stopped, however, the devaluation of the national currency to 26.78-26,8 UAH/$ leads to increase of UAH prices. Perhaps the increase in India's import duties on wheat from 10% to 20-25% will close a significant part of the export market for Ukrainian grain. In the 2016/17 my, Ukraine exported to India more than 3.4 million tons of wheat.