Favorable weather reduces the price of wheat in the United States
Due to lower crop forecasts in Russia two-day growth of quotations of wheat on Friday was changed to a corrective decline.
rainfall last week and favorable weather in the U.S. will soon improve the condition of spring wheat. Traders watch the news of the world wheat market and expect June 29, when USDA will publish the updated report with data on crops of wheat, corn and soybeans, and on quarterly balances of these cultures.
the July wheat futures in the U.S. fell:
1.65 $/MT to 179,58 $/t for solid winter HRW wheat in Kansas city
1.38 $/t to 201,72 $/t on a firm spring HRS wheat in Minneapolis.
- 1.47 $/t to 180,50 $/t for SRW soft winter-wheat in Chicago
Fresh details of the harvest in major producing countries will allow traders to predict the future behavior of the exchange rate.
- September futures milling wheat on MATIF remained at the level of 176,25 €/t (205,42 $/t).
Experts Agritel inspected crops in Romania, Russia and Ukraine, after which significantly reduced the wheat crop forecast for Russia. Now traders are waiting for the assessment of wheat crop for Ukraine. Meanwhile, the Ministry of agrarian policy forecasts the harvest of wheat in the range of 23-26 million tonnes, down from 26.2 million tons in 2017.
Prices for Ukrainian wheat has remained constant, although the demand for the old crop continued to fall, while export shipments for the week fell by 70% to 75 thousand tons.
Traders hope for better demand from importers in the near future. For example, a private manufacturer of animal feed from Philippines acquired 220 thousand tons of feed wheat black sea origin presumably at a price 223-227 $/t CFR for delivery in August-November. And the Ministry of food of Bangladesh has announced an international tender to purchase 50 thousand tons of milling wheat of arbitrary origin.