Prices for black sea wheat has increased by 10-15 $/t after the exchanges in the United States and the EU
Panic buying products in countries where imposed quarantine, and rumors of a possible restriction of exports led to a sharp increase in demand for wheat. After the speculative growth of quotations at stock exchanges of the USA and the EU, prices for black sea wheat, which remains the cheapest in the world also increased.
But experts believe that soon the demand for wheat will decline, as the population has acquired stocks of products, and most of the establishments is not working. Therefore, traders began to fix profit, and the stock market turned down.
In the US, falling prices limited the increase in weekly export sales of wheat by 73% to 740 thousand tons, of which 200 thousand tonnes of purchased China. Actual exports for the week amounted to 415 thousand tonnes, and since the beginning of the season was 19.5 million tonnes, which is 10% higher than last year's figure on this date.
the May wheat futures in the U.S. fell:
by 5.05 $/t to 179,03 $/t for solid winter HRW wheat in Kansas city
at 2.30 $/t to 195,20 $/t on a firm spring HRS wheat in Minneapolis.
- by 4.04 $/t to 209,07 $/t for SRW soft winter-wheat in Chicago
On the stock exchange in Paris yesterday also saw the adjustment of prices.
- the May futures for milling wheat on MATIF fell by 4.25 €/t to 193.5 €/t, however, as a result of Euro strengthening to $ 1.103 $/€ dollar price has not changed and is 214,19 $/t
After the rise in price of European wheat, which this season actively competing with black sea, prices for Russian wheat rose for the week of 10-12 $/t. in addition, they support the threat of suspension or restriction of wheat exports from Russia on the background of rising prices on the domestic market and the devaluation of the ruble.
the Union of millers of Russia appealed to the SGA asking for regulation of the prices of wheat and phytosanitary service began to detain the issuance of certificates for export shipments, although the government stated that it will not stop the export of grain.
the increase of demand prices for Russian wheat with protein 12,5%, from 203-205 $/t FOB before 215-216 $/t FOB, while the bid prices increased to $220/t FOB, although the number of offers has decreased dramatically.
the experts of the IGC confirmed good prospects of the world wheat crop in 2020/21 MG, evaluating it to a record 768 million tonnes, a reduction of the global consumption and demand through imposed quarantines it would increase the pressure on prices, and only logistical problems or artificial restriction of exports may lead to speculative growth.