Speculators warmed up wheat prices to 2-month high

After a slight fall yesterday on the eve of world wheat prices resumed growth and may futures reached a 2-month high.

following the adoption by the Senate of the package to support the economy at $ 2 trillion, the stock markets were up 10-12%. Against this background, speculators in the commodity markets continued purchasing in anticipation of further price increases. Markets maintains high export demand and introduced in some countries restrict food exports.

Iraq that regularly buys wheat in the United States, announced its intention to increase imports.

Kazakhstan until 15 April banned the export of flour and other products.

the Romanian Government announced a 14-day quarantine for ships arriving from countries with outbreaks Covid-19, but later reversed the decision.

Experts expect that the weekly forward sales of new crop wheat from the United States will grow to 150-450 thousand tonnes, while sales of the old crop will remain at a high level of 200-500 thousand t

the May wheat futures in the U.S.:

the

3.77 $/t to 184,08 $/t for solid winter HRW wheat in Kansas city

0.92 $/t to 197,49 $/t on a firm spring HRS wheat in Minneapolis.

• on of 6.80 $/t to 213,11 $/t for SRW soft winter-wheat in Chicago

the Market for French wheat yesterday also rose to 2-month high after rally in Chicago and support the outcome of the tender in Algeria, which yesterday bought 240 thousand tons of milling wheat for delivery in June at a price of 243 $/t CFR, which is 16.5 $/t higher than at the previous auction on March 11.

the

• the May futures for milling wheat on MATIF rose by 3 €/t to 197,75 €/t or 215,63 $/t

the price of Russian wheat continued to rise following the world and bid prices has reached 217-222 $/t, whereas the demand price rose to 215 $/ton FOB for shipments in April-may.

Markets remain in limbo with the future trends. However, the fundamental factors in the form of large world reserves and good prospects for the new crop by a decline in consumption in the near future may significantly reduce prices.

Realizing this, the buyers are in no hurry to buy expensive wheat. So, the South Korean manufacturer of animal feed MFG, which is planned to tender March 25 by 68 thousand tons of feed wheat, rejected all bids for the sharp rise in prices of the proposals in comparison with the previous auction on March 18.