Wheat prices turned upwards due to speculative purchases

Forecasts dry weather for the next month in the major producing countries, especially in Australia, where drought reigns for the third season in a row, speculators used as the factors supporting market prices for wheat.

it is Expected that during the spring growing season in September 2019 in Australia, rainfall will be below normal, so the wheat crop will be 10% less than projected, and will not exceed 19 million tonnes, while in June the Australian Bureau of agriculture economy was estimated at 21.2 million tonnes, the Worst situation is on the Eastern coast of the country.

In Canada cool weather delays the ripening of the crops of canola and wheat.

drought conditions in parts of the European territory delayed planting of winter wheat.

on Wednesday, the European wheat market improved somewhat after 5-day fall. The depreciation of the Euro against the dollar increases the competitiveness of European wheat in front of the black sea, which gives hope for continued strong exports, which is observed in this season.

• December f't usersi on milling wheat MATIF increased by 0,25 €/t to 166,25 €/t or 183,36 $/t

Despite bearish fundamental factors December f’ucers of wheat in the United States after 4-day fall turned up by the speculative purchases and fall of the dollar.

Prices supports delayed harvest of spring wheat in the United States, where threshed, only 55% of the area compared to 78% in average of 5 years.

the December wheat futures in the U.S.:

0.83 $/t to 141.28 $/t for solid winter HRW-wheat in Kansas city

by 2.57 $/ton to 181,51 $/t on a firm spring HRS wheat in Minneapolis.

• by 2.66 $/t to 169,29 $/t for SRW soft winter-wheat in Chicago

Msnap Russia left the forecast of grain production at 118 million tonnes, of which wheat and 75 million tons In some regions, severe weather conditions hampered the harvesting of spring wheat. As of September 3, harvested 88,1 million tonnes of grain with a yield of 2.91 t/ha (in 2018 of 2.85 t/ha). With 19.4 million hectares or 69.1% of the area gathered at 62.8 mn t of wheat with a yield of 3.24 t/ha (2018 - 3,26 t/ha).