Wheat prices drop under pressure of the new crop
at the End of the week wheat prices remained unchanged amid uncertainty with the state of the corn crops in the United States and the prolonged drought which was established in the South-East of Ukraine and southern Russia. Heat in the EU this week will increase the stress of spring crops.
the Increase in corn prices support wheat prices, which puts pressure forecast higher yields in the EU and Russia in the current season. Precipitation in Argentina contribute to the sowing of wheat, which can lead to increase in acreage and gross collection.
the French wheat Market on Friday rose against the background of forecasts of precipitation in the wheat belt of the US and heat in the West, the EU in the coming days. In France in good or excellent condition are 80% of crops, while on this date last year, the number was 75%.
- September futures for milling wheat on MATIF rose by 0.75 €/t to 180,75 €/t or 205,60 $/t
Almost all of Friday wheat futures in Chicago were trading in the green zone, but at the end of trading, slipped under pressure from neighboring markets of soybeans and corn. Pressure on prices growth in the supply of winter wheat of the new harvest.
Traders also took into account the possible expansion of acreage under wheat in Argentina.
the July wheat futures in the U.S. fell:
by 2.94 $/t to 166,26 $/t for solid winter HRW wheat in Kansas city
0.83 $/t to 196,94 $/t on a firm spring HRS wheat in Minneapolis.
- 0.18 $/t to 193,27 $/t for SRW soft winter-wheat in Chicago
In the markets of black sea wheat, new crop, and buyers have started to lower prices. Farmers do not hurry with the sale because of rising costs and a sharp drop in prices compared to last year.
Ukraine per week exported 40 thousand tons of wheat, and from the beginning of the year – 15.5 million tonnes, which is 8.4% lower than in the previous year.