Wheat prices started the week falling in the absence of support factors

Yesterday's sharp drop in stock and commodity markets, due to the problems of some Chinese companies, increased pressure on wheat quotes, which did not receive new support factors.

On US stock exchanges, wheat prices fell amid improved weather in winter wheat sowing areas and high sowing rates. According to the USDA, as of September 19, 21% of the planned areas were sown with winter wheat in the country, which is 3% higher than the 5-year average. Stairs were obtained on 3% of the area compared to 1% on average.

Wheat exports from the United States for the week increased to 563.4 thousand tons, which exceeded expert expectations and by 60 thousand tons – the corresponding indicator last year. In general, in my 2021/22, exports reached 7.714 million tons, which is still 12.3% lower than last year's pace, but the gap is rapidly decreasing.

December US futures fell yesterday:

• by 2 2.94 / ton to Чикаго 257.5/ton for soft winter SRW wheat in Chicago,
• by 4 4.78 / ton to H 257.2/ton for hard winter HRW wheat in Kansas City,
• by 2 2.38/ton to.328.5 / ton for hard spring HRS wheat in Minneapolis.

According to the customs service, China has imported 6.96 million tons of wheat since the beginning of the year, including 710 thousand tons in August, which is 1.1% more than in August 2020.

The strengthening of the dollar against the euro continues to increase the competitiveness of European wheat in comparison with American wheat.

• December wheat futures on Paris ' Euronext fell 2 €/T yesterday to 245.75 €/t or 2 288.39/t.

December Black Sea wheat futures at Chicago SWOT fell вчора 4/ton to.311/ton yesterday, as they remain the most expensive among competitors. At the same time, prices for Russian food wheat with 12.5% protein have been rising for 10 consecutive weeks, and last week they rose, according to Icarus, by 1 1/ton to F 301/ton FOB for deliveries in October – November, and according to SovEcon – by 1 1.5/ton to F 304.5/ton FOB.

Dry weather in the east of Russia allows us to complete the harvesting of spring wheat, which is 72.3 million tons out of 88% of the area threshed. in the south and in the center, the weather contributes to the sowing of winter crops, which have already been sown 46% of the planned areas or 9.2 million hectares (9.3 million hectares last year).

In Ukraine, purchase prices for food wheat remain in ports at a high level of 8600-8650 UAH/ton or 283-285 $/ton. but traders have tightened quality requirements and do not accept wheat with a natural weight of less than 750-760 G/L.

An increase in corn supply will reduce the demand for feed wheat from processors, as a result of which the price difference between feed and food grain will increase to 2 20-25/ton.