Wheat prices update multi-year highs
After some minor adjustments the wheat market in the United States from Monday's continued growth. September wheat futures in Chicago reached the highest since July 2015 level.
Traders worried about the fate of future crops in the EU, Australia and Canada. Wheat exports dropped by 14% to 325,4 thousand tons, which is twice lower than the previous year.
the September wheat futures in the U.S.:
by 6.89 $/t to 215,31 $/t for solid winter HRW wheat in Kansas city
5,70 $/t to 230,84 $/t on a firm spring HRS wheat in Minneapolis.
- 6.71 $/ton to 211,09 $/t for SRW soft winter-wheat in Chicago
Reduced crop forecasts in the EU, and drought in Australia contribute to the further growth of the world prices for wheat.
- September futures milling wheat in Paris rose yesterday on 3,75 €/t to 214,75 €/t or 248,28 $/t and updated 5-year high.
Traders believe that the crop of wheat in the EU will continue to decline and prices to rise, although weekly exports of wheat from the EU increased to 280,7 thousand tons.
the Restoration of the wheat harvest in Ukraine and Russia doesn't give optimism to the market.
the Ministry of agrarian policy increased the forecast of wheat production from 23 to 24 million tons, has lowered the forecast of wheat exports from 10 to 8 million tons, and denied intention to limit exports.
As of August 6, with 91% of the area harvested 21.5 million tons of winter wheat with a yield of 3.68 t/ha, and 30% of the area – 185 thousand tons of spring wheat with a yield of 3.11 t/ha.
In July 2018 Ukraine in comparison with the corresponding period of 2017 increased wheat exports by 25% to 1.5 million tonnes, including food – to 848 thousand tonnes of feed – to 669 thousand tons.
amid increased demand purchase prices at ports have grown to the next level:
protein 11,5% 202-205 $/t or 6500-6600 UAH/t,
forage 188-192 $/t or 5800-5950 UAH/t
- protein 12.5% of 208 to 210 $/t or 6700-6800 UAH/t,