Speculative growth of market prices for wheat will be short-lived

2020-08-17 12:02:27
Machine translation
Speculative growth of market prices for wheat will be short-lived

Last week stock prices for wheat remained in positive territory despite the pressure of such fundamental factors as the significant forecast of the world crop and ending stocks and low export demand. Traders conducted technical procurement and covered short positions, taking profit made on the eve of the release of the USDA report rates.

 

Weather conditions in Australia, Canada, USA and Eastern Russia contribute to the development of crops of spring wheat, which increases pressure on world prices.

 

the price of wheat in the United States grew after the corn market, despite low export demand and improve the condition of spring wheat in the United States. Export sales of wheat from the U.S. last week fell by 39% to 358 thousand tonnes, although overall in the season exceed last year's 7.8%.

 

the September wheat futures in the U.S.:

the

0.09 $/t to 156,25 $/t for solid winter HRW wheat in Kansas city

0.18 $/t to 182,80 $/t on a firm spring HRS wheat in Minneapolis.

  • 1.19 $/ton to 183,72 $/t for SRW soft winter-wheat in Chicago

 

French wheat on Friday rose in price after Chicago, as investors were heavily involved in speculative buying.

 

the

  • September futures milling wheat on MATIF rose 2.5 €/t to 2-week high 180,75 €/t or 214,06 $/t

 

In Russia there was an unusual situation, when, with the progress of the harvest in the Central and Eastern regions the yield of wheat is gradually decreasing. As of August 13, with 57.3% of the area or 16.9 million hectares and produced 61.7 million tons of wheat with a yield of 3.66 t/ha (3.58 t/ha in 2019).

 

For the week, Russia exported 971 thousand tons of wheat, and from the beginning of the season and 4.3 million tonnes, which is 13% below the corresponding period last year.

 

In Ukraine as of 13 August, with 96% of the space, or 6.3 million hectares and produced 25.5 million tonnes of wheat with a yield of 4.05 t/ha, which confirms the projected harvest level 26-26. 5 million tons.

 

wheat Exports from Ukraine for the week increased by 48% to 708 thousand tons and since the beginning of the season were 2.4 million tonnes, equivalent to last year's level.

 

September futures on the black sea wheat in Chicago on Friday fell by 0.55 to 202 $/t in December – to 209.5 $/t

 

the increased demand for black sea wheat from Pakistan, Vietnam and the EU supported the bid price, which stopped a drop in the level 194-196 $/t FOB, while the bid prices is $200/MT FOB.

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