Rapid growth in soybean and corn markets supported wheat exchange prices

Forecasts of frosts in wheat-growing regions in the United States support speculative price increases, although the frosts have so far been insignificant. In addition, the rapid growth of soybean and corn markets by 3-5% supported stock prices for wheat.

Forecasters reported that in the states of Kansas and Oklahoma, the air temperature on Wednesday dropped so much that it could cause some damage to hard winter wheat crops. And the National Weather Service on Thursday morning reported possible frosts in areas of the Midwest where soft winter wheat is grown.

Data on export sales today will stop the growth of quotations, as importers restrain purchases in anticipation of lower prices under the pressure of such fundamental factors as significant stocks of old – crop wheat from buyers, and even larger balances from the main exporters-the United States, the EU and Russia, which need to be sold before the end of the season.

May futures rose:

• by 4 4.96 / ton to Чикаго 247.37/ton for soft winter SRW wheat in Chicago,
• by 3 3.67 / ton to H 231.76/ton for hard winter HRW wheat in Kansas City,
• by 3 3.49/ton to.249.30 / ton for hrs durum wheat in Minneapolis.    

French wheat prices rose significantly more than American wheat yesterday.

• May wheat flour futures on Paris Euronext rose by 8.5 €/t to 231.5 €/t or 2 278.54/t, while September futures rose by 3 €/T to 213.25 €/t or.256.75/t.

Trading data for the period April 7-13 showed that non-commercial exchange participants increased their net long position on wheat by 60% to a 4-week high of 103,926 lots, which confirms the speculative factor of price growth.

At the same time, July futures for Black Sea wheat on the Chicago Stock Exchange yesterday rose only by 2 2/ton to.252/ton, as there are few people willing to Buy Black Sea wheat of the new crop at high prices.

• In the physical market of the Black Sea region, offer prices for old-crop wheat have increased to 2 258-260/ton FOB, but buyers are not ready to pay more than.250/ton FOB.

The growth of World quotations supported the prices of wheat of the new crop in Ukraine, which recovered to 2 225-230/ton for deliveries to the port in July – August and almost correspond to the current level of purchase prices.