Wheat prices decrease in Ukraine
In anticipation of the release of the updated balances of production from the USDA, traders have reduced trading activity due to uncertainty with the amount of wheat in the world in season 2017/18. Traders have clear information on the decline of wheat production in the United States, but the prospects of the wheat harvest in Australia, where already passed and are forecasted significant rainfall, and Canada, where so far the drought continues, remains open to question. Also, it's unclear how much to increase wheat production in Russia, where yields of 10% more over last year's record. It is expected that wheat exports from Russia may reach 31 million tons.
on Wednesday, the wheat futures in Chicago rose slightly, after falling on Tuesday, due to speculative purchases in anticipation of the release of the August USDA report on Thursday.
the September wheat futures in the U.S.
- soft wheat SRW in Chicago by 0.92 $/t to 168,83 $/t,
- for hard wheat HRW in Kansas city by 1.19 $/ton to 170,40 $/t,
- on a hard spring wheat HRS in Minneapolis by 1.01 $/t to 269,69 $/t
the September contracts of French wheat continued to fall on Wednesday, under pressure from a good harvest and pessimistic outcome wheat exports last season. In General, in the 2016/17 season, France exported 11,073 million tonnes of soft wheat, which is 35.6% less than in the 2015/16 season and almost 40% less than the record season of 2014/2015.
- September futures milling wheat on MATIF fell by 0.25 €/t to 161,50 €/t (189,65 $/t).
In Ukraine, prices of wheat and wheat with protein 11.5 percent, continue to decline rapidly under the pressure of the new crop and information about the quality of the new wheat. Traders expected that 60-65% of wheat is food quality, but according to information from the regions, the share of feed wheat could rise to 45-50%. Therefore, the price of wheat protein 12,5% practically remained at the level of 172 and 173 $/t or 5250 5350 UAH/ton, while the price of fodder wheat for a week has decreased from 158 to 150 $/t or 4500-4600 UAH/t with delivery to the port. The price of wheat with protein 11.5 per cent also decreased from 170 to 165 $/t or 4900-5100 UAH/t due to the fall in prices for Russian wheat, which is actively entering the black sea market.