Global wheat prices started the week with rapid growth

On Monday, the rise in world wheat prices continued amid increased speculative demand caused by the drought in Ukraine and Russia, which reduces the prospects for the future harvest and may damage winter wheat crops.

During the two sessions, wheat prices in Chicago rose by 2.4%, in Kansas – by 3.7%, in Minneapolis – by 4.2%, following the growth of the neighboring corn market.

Actual wheat exports from the United States for the week fell to 140.4 thousand tons, and in general in 2021/22 MG amounted to 9.478 million tons, which is 17% lower than last year's pace.

Winter wheat in the United States is sown in 80% of the area, which corresponds to the average 5-year level, and seedlings are obtained on 55% of the area compared to 59% on average. 46% of winter wheat crops are in good or excellent condition, compared to 41% last year.

December US futures fell:

• by 1 1.28 / ton to Чикаго 279.1/ton for soft winter SRW wheat in Chicago,
• by 1 1.38 / ton to H 285.8/ton for hard winter HRW wheat in Kansas City,
• by 5 5.14/ton to.377.4 / ton for hard spring HRS wheat in Minneapolis.

A decrease in the intensity of precipitation in France made it possible to accelerate the harvesting of corn and sowing of winter wheat, which as of October 18 was sown 40% of the area, which corresponds to last year's level.

• December wheat futures on Paris ' Euronext rose 2 €/T to 282 €/t or 3 324.8 / t.

They were supported by the results of a tender in Tunisia, where the state agency ODC purchased 50 thousand tons of soft wheat for delivery in November – December at a price of 3 373.6/ton of C&F.

December Black Sea wheat futures at the Chicago SWOT on October 22 reached a record $337/ton, but yesterday fell to 3 334.5/ton against the background of traders fixing profits after a rapid increase in prices, which added 6.2% for the month.

In the ports of Ukraine, purchase prices remain at the level of 8850-8950 UAH/t or 295-300 $/t for food wheat and 8100-8400 UAH/t or 270-275 $/t for feed wheat, but against the background of rising delivery costs, prices are gradually decreasing.