The price of wheat in Europe is falling under pressure from the strong Euro and poor export
After rising slightly on Wednesday, French wheat yesterday has again started to become cheaper. A two-day growth of wheat futures in Chicago succeeded in limiting the intensity of the fall.
the Pessimism of traders due to further strengthening of the Euro and the deterioration of forecasts of exports of European grain.
the Agency Strategie Grains has once again lowered its assessment of exports of European wheat in 2017/18 MG. Relative to the December forecast, the rating is reduced by 750 thousand tonnes to 21.6 million tonnes, which is 2.5 million tonnes lower than in the previous season and will be the lowest level of the last 5 seasons.
the More optimistic analysts of the European Commission estimated the exports at 26 million tons and experts CIG predict it on the level of 24.9 mln tons.
- March delivery milling wheat on MATIF fell by 0.25 €/t to 155,75 €/t (190,46 $/t).
Chicago wheat quotes continued to rise, mainly due to the depreciation of the dollar against a basket of major currencies to the lowest level in the last 3 years.
a Wide range of expectations for the weekly export sales within 200-500 thousand t indicates uncertainty-traders in the competitiveness of U.S. wheat.
March futures U.S. winter wheat was grown:
0,92 $/t to 157,81 $/t for solid winter HRW wheat in Kansas city.
- 1.38 $/t to 156,25 $/t for SRW soft winter-wheat in Chicago
Currency purchase prices for Ukrainian wheat remain stable. However, due to the devaluation of the hryvnia within two weeks the purchase price of wheat in local currency increased by 150-250 UAH/t. This has increased sales, but most sellers are holding volumes in anticipation of further price increases.