Speculative growth in wheat prices accelerated for the support of vegetable oil markets
Yesterday a sharp rise in prices of oil and soybean oil on the stock exchange in Chicago at 3-3,3% supported the price of wheat and corn, which are under pressure of the fundamental factors of demand reduction.
On the exchange MATIF continues speculative growth of the March futures of French wheat, caused by the expiration of the contracts. Yesterday they had almost reached the 8-year high, increasing the difference with the may futures to $15/t higher prices contributed caused by the drought forecasts a jump on the stock exchange in Chicago, as well as short covering by investors. In addition, the export potential of French wheat is almost exhausted, the end of the season will only strengthen the support of the quotes.
- the March futures for milling wheat on MATIF rose by 4.5 €/t to 245,25 €/t or 298,20 $/t, and the may – at 3.25 €/t to 232,75 €/t or 283,42 $/t
In Chicago March delivery on the soft wheat expensive for a third consecutive day following the rapid growth of the neighbouring markets of soybeans and corn.
the Market is supported by weather factors, because in some agricultural regions of the American Plains after the extreme frost has been a drought, and in Russia the temperature again dropped sharply. The investors have been buying, so speculative factor also played a role.
the March wheat futures in the U.S.:
- 5.32 $/t to 249,94 $/t for SRW soft winter-wheat in Chicago,
- by 5.51 $/t to 241,03 $/t for solid winter HRW wheat in Kansas city,
- by 3.86 $/t to 237,54 $/t on a firm spring HRS wheat in Minneapolis.
Ministry of Commerce and industry of Jordan on 24 February purchased the tender 60 thousand tons of milling Romanian wheat 16-30 October at a price of 279 $/t C&F, while prices were up 283-286 $/t C&F.
High purchase prices for wheat of the new harvest support quotes the old harvest and keep away from the expected fall in prices in the physical markets. However, the lack of large tenders for the purchase of wheat old crop in the near future will increase pressure on prices.