Wheat prices continue to fall on forecasts of an increase in sowing areas in the United States

Wheat prices continue to decline on world stock exchanges, which in two days completely offset the rapid speculative growth at the beginning of the week.

The reason for the change in the trend was forecasts of precipitation in the regions where winter wheat is grown and an increase in sowing areas in the United States, and even record weekly export sales in the current season could not support prices.

According to forecasts of the IHS Markit agency, wheat sowing areas in the United States in 2022 will amount to 48.157 million tons, in particular, under winter wheat they will grow from 33.648 to 34.397 million acres compared to the previous season, under spring wheat – from 11.42 to 12.01 million tons, under durum wheat – up to 1.75 million acres.

According to the USDA, export sales of wheat from the United States for the week of January 14-20 increased to a record 676.7 thousand tons this season, and in general in 2021/22 MG reached 17.2 million tons out of the projected 22.45 million tons.

March futures for winter wheat in the United States on Wednesday fell by 2-2.9%, and yesterday by another 2.4-2.9%, returning to Friday's level.

March wheat futures in the US fell yesterday:

• by 6 6.61 / ton to Чикаго 285.5/ton for soft winter SRW wheat in Chicago,
• by 8 8.17 / ton to H 291.6/ton for hard winter HRW wheat in Kansas City,
• by 5 5.05/ton to.331.6 / ton for hard spring HRS wheat in Minneapolis.

March futures for European wheat on Paris Euronext after rising on Monday 18.25 €/ton yesterday fell by another 4 €/ton to 277.25 €/ton or 309.19 €/ton, falling in two days by 13.5 € /ton.

Today, Egypt's GASC will hold an international tender for the purchase of wheat, which will become an indicator of new price levels for Black Sea and European wheat, and demonstrate the readiness of Russian sellers to lower prices.

In Ukraine, purchase prices for food wheat again fell to 3 300/ton, but Hryvnia prices remained at the level of 9850-10000 UAH/ton due to a decrease in the hryvnia exchange rate by another 10 kopecks to 28.9 UAH/т.