Speculative growth of prices for wheat stopped
Precipitation that soon will take place in regions of winter wheat production in the USA lowered the speculative activity of traders, which is reflected in the reduction of short positions in wheat for 26000 contracts to 56,8thousand.
on Friday, wheat futures in Chicago and Minneapolis fell, and in Kansas has remained unchanged thanks to improved weather forecasts, and based on the output of Monday due to presidents Day holiday.
the Agency Informa Economics on Friday forecast increased acreage of spring wheat to 11.25 million acres, and the total area of wheat crops in the US until 46,14 million acres. The forecast yield of winter wheat in the US compared with the January report reduced by 3.3% to 47.7 bushels/acre, and the harvest of winter wheat decreased by 4.8% to 1,231 billion bushels. The reduction of harvest, the traders have already factored in their forecasts, so this report had a bearish influence on the price of wheat.
the Pace of wheat exports is 82%, which is inferior to the rate 91% last year and the average level of 89%.
French stock exchange following Chicago on Friday ended with a minus under pressure the Euro strengthened to a three-year high.
- March delivery milling wheat on MATIF rose by 0.75 €/t to 159,5 €/t (198,62 $/t).
offer Price on black sea wheat with protein of 12.5% on the basis of FOB continues to grow due to the reduction of sales in Ukraine and reducing supply from Russia due to weather conditions in the seaports of Azov. However, the prices stabiliziruemost in early spring when the supply of seasonal increase.