Speculators continue to rock the price of wheat

2019-06-07 12:08:31
Machine translation
Speculators continue to rock the price of wheat

Sharp rise in wheat prices in the United States on Thursday, caused by rumours about the intentions of the American buyers instead of feed corn to buy SRW-wheat, compensated for the previous two-day decline. Compared to the previous MG corn crop in the U.S. could be reduced by 20-30 million tons, and the growth of export prices for corn will force the local companies to give preference to cheaper wheat.


If in the previous season, wheat prices were $30-50/tonne higher than the price of maize in the current season the spread between them will unfold in the other direction and the wheat will be 10-15 $/t cheaper.


Speculative sentiment support the forecast precipitation and decrease in temperature in the U.S. in the next 6-10 days.


the July wheat futures in the U.S.:

3.49 $/t to 167,27 $/t for solid winter HRW wheat in Kansas city

by 6.61 $/t to 207,60 $/t on a firm spring HRS wheat in Minneapolis.

  • by 7.07 $/t to 187,39 $/t for SRW soft winter-wheat in Chicago


the French wheat Market reacted to the price spike in Chicago and dry weather in Russia. However, prices under pressure from the strengthening of the Euro and good crops of wheat.


  • September futures for milling wheat on MATIF rose by 0.5 €/ton to of 179.5 €/t or 202,34 $/t


the precipitation Deficit in the South of Russia supports bid prices for Russian milling wheat with protein of 12.5% at a high level of $200/MT FOB, and bid - level 190-193 $/t FOB. Evaluation of wheat production in Russia are in a wide range of 72-82 million tonnes, More accurate prediction can be done at the end of the month, given the weather conditions in the South and East of the country.


In Ukraine, the prices on feed wheat for delivery in July remain at 180-182 $/t FOB, while the bid price does not exceed 175 $/MT FOB.

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