Speculative adjustment of stock prices did not stop the falling prices in the physical markets of wheat

Despite the pressure of fundamental factors on the wheat market, yesterday on the stock exchanges experienced a speculative price adjustments associated with the growth of neighboring markets of soybean, maize and soybean oil.

at the same Time on the physical markets wheat continues to become cheaper following a sharp decline in prices for feed wheat, bran and meal of oilseeds.

Prices for black sea wheat fell to 269-272 $/t FOB in the background of the collapse of the Turkish Lira by 17% after the head of the national Bank of Turkey resignation. The decline in the purchasing power of the main buyer of Russian wheat on the background and so the slow pace of exports will further strengthen pressure on prices.

French wheat went up yesterday for the first time in the last 11 sessions, with the support from a weaker Euro and rising prices for U.S. wheat.

• the May futures for milling wheat on the Paris MATIF rose by 2.25 €/t to 221 €/t or 261,83 $/t

the Wheat exchange USA yesterday traded pressure monitoring data from USDA showed improvement in the condition of winter crops. However, at the end of the session, they received support from neighboring markets of soybeans and corn, which grow on the background of delayed harvest of soybeans and corn planting of the second crop in Brazil as a result of intense rains.

May futures rose:

• by 2.76 $/t to 233,23 $/t for SRW soft winter-wheat in Chicago,
• 1.38 $/t to 213,84 $/t for solid winter HRW wheat in Kansas city,
• 1.56 $/t to 231,57 $/t on a firm spring HRS wheat in Minneapolis.

the July futures black sea wheat traded at 234 $/t and the August – 235 $/t

In Ukraine exporters reduced the procurement price of wheat at the port to 7900-7950 UAH/t or 247-250 $/t, and processors to 7700-7800 UAH/t with delivery to the plant.

Seasonal increase in the supply of wheat increases pressure on prices, especially given the low demand from exporters who can sell the wheat is not as expensive 265 $/t FOB, as the European wheat offered on the market at 260-270 $/t FOB.