Wheat prices in anticipation of the results of the tender in Saudi Arabia

2020-02-21 12:57:34
Machine translation
Wheat prices in anticipation of the results of the tender in Saudi Arabia

Yesterday, the wheat markets continued to be under pressure of low demand and uncertainty in the following levels of trade awaiting the outcome of a major tender in Saudi Arabia that can be customized Sathaye demand for European wheat and will give a new price targets for the world wheat market.

 

the First official forecast of sowing areas of wheat in the United States in 2020 was above expectations of traders and amounted to 45 million acres, which is almost the same as last year, which put additional pressure on us wheat futures after speculative growth of 4% two days ago.

 

the strengthening of the U.S. dollar to the highest level since April of 2017 against a basket of major currencies also has a negative impact on the attractiveness of export of U.S. wheat.

 

Speculators in the wheat exchanges of the US the second trading day in a row provided technical sales after a frantic rally that occurred on Tuesday. Data on export sales of US wheat for the week will be presented today, not Thursday as is usual in connection with the weekend on Monday, and experts forecast increased weekly export sales of US wheat to 400-700 thousand tons.

 

the March wheat prices in the U.S. declined:

 

soft Wheat SRW in Chicago by $1.93 and to 205,76 $ / ton

hard Wheat HRW in Kansas city for $2.21 are to 174,07 $ / ton

durum Wheat HRS in Minneapolis by $ 2.48 to 194,55 $ / ton

 

 

the State Agency of Saudi Arabia Sago has announced a tender for the purchase of 715 thousand tons of wheat for delivery in the period from April to June and the results will be known today. At the previous tender in October, SAGO purchased 605 thousand tons of wheat at an average price of about 242,5$/t CIF.

 

Competitive prices for European wheat in comparison with the black sea gives hope that, as on the tender in Egypt, European wheat will be able to successfully defeat the Russian.

 

 

on Thursday, the French wheat market has decided not to follow Chicago in its decline. Traders believe that the tender in Saudi Arabia will breathe new life begins to slow down European exports. According to rumors, Russia in this tender will have to participate, you will not be able to claim more than 60 thousand tons of wheat with protein 11%, but the amount of wheat with protein 12,5%, likely to completely fall into the hands of the Europeans.

Support to quotations also gave a forecast of the Agency Coceral according to which the production of soft wheat in the EU-27 and the UK in 2020 will be reduced by 5% per year before 137,9 mln. t including those in France by 10% to 35.7 million tons in Germany by 3% to 22.2 million tonnes and the UK at 23% to 12.3 million tonnes, while in Romania will grow by 5% to 9.1 million tons and Poland by 7% to 11.7 million tonnes.

 

 

the volume of shipments of French wheat for the week were at a good level 272 thousand tons due to a shipment to Morocco and Algeria.

 

the March quotations of milling wheat on the Paris stock exchange MATIF rose by €0,25 to 196.00 €/t, or 211,49$/t

 

 

In the cash markets European wheat notes, a slight decrease in demand, particularly in the black sea (Romanian) wheat, which has lost $ 2-3 to the level of 218-219$/t FOB.

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