Dry and hot weather warms up wheat prices in the US

Forecasts of favorable weather with heavy rains in the US corn belt increase pressure on soybean and corn prices, while in spring wheat growing areas on the American plains, precipitation shortages and heat at 30-35 °C will further worsen the condition of crops.

Winter wheat harvesting in the United States is accelerating, and according to farmers, the yield is still above average, although the protein content is significantly lower than average.

The expected heat wave in the United States and an increase in the number of procurement tenders supported wheat quotes on US stock exchanges.

July futures rose yesterday:

• by 3 3.76 / ton to Чикаго 242.9/ton for soft winter SRW wheat in Chicago,
• by 5 5.7 / ton to H 224.9/ton for hard winter HRW wheat in Kansas City,
• by 8 8/ton to.295.4 / ton for hard spring HRS wheat in Minneapolis.

Favorable weather conditions and forecasts of an increase in rolling stocks due to low export rates at the end of the season have increased pressure on European wheat prices.

• September wheat flour futures for MATIF fell 0.25 €/t to 206.75 €/t or 2 246.5 / t.

This week, the quotes will be supported by tenders announced by many importers for the purchase of wheat.

Taiwan'S FMA plans to purchase 55 thousand tons of American food wheat for delivery from PNW ports in August.

The Ethiopian government, with the support of the UN, announced a tender for the purchase of up to 400 thousand tons of flour wheat with 11.5% protein.

The Iranian state agency GTC today will close the tender for the supply of flour wheat of any origin in August – September.

In the south of Ukraine and Russia, barley harvesting has begun, but wheat harvesting will be delayed by rains that will last for another 5-7 days and may significantly worsen the quality of wheat.

Black Sea wheat futures in Chicago rose:

• July-by 1 1 / ton to 2 250.75 / ton,
• December-by 0 0.5 / ton to.260 / ton.

Supply prices for Black Sea wheat have stabilized at F 250/ton FOB, so that purchase prices for food wheat in Ukraine have increased in the port to 2 228-232/ton, while feed prices are 8 8-10/ton lower, since prolonged rains can significantly increase the share of feed grain.

Wheat reserves in Ukraine as of June 1 increased from 1.97 to 2.396 million tons compared to last year, in particular, agricultural enterprises – from 1.37 to 1.575 million tons, and storage and processing enterprises – from 598.8 to 819.9 thousand tons.