Wheat prices have resumed falling
After a minor speculative rise in wheat prices yesterday, traders started active sales amid predictions of increasing a new crop and the fall of the neighboring markets of soybeans and corn due to a possible reduction in global consumption of coarse grains.
the Increase in forecast wheat production in Russia up to 78-81 million tons and the EU-up to 140,8 million tons suggests that competition with American grain in the new season will skyrocket.
Ahead of Friday's USDA report, traders have lowered prices, although the prices of old crop wheat in the United States is already lower than the new. For example, the may futures for soft wheat in Chicago traded at 165,34 $/t, July – 167,18 $/ton, in September – is 170.6 $/t
the May futures in the U.S. fell:
by 4.68 $/t to 161,12 $/t for solid winter HRW wheat in Kansas city
0,92 $/t to 203,19 $/t on a firm spring HRS wheat in Minneapolis.
- by 4.68 $/t to 165,34 $/t for SRW soft winter-wheat in Chicago
the European market after a 3-day growth resumed its decline under pressure from the us stock exchanges and on the back of increased competition.
- May futures on milling wheat was down 0.75 €/t to 186,75 €/t or 211,18 $/t September – 1 €/t to 176,25 €/t or 199,28 $/t
In Ukraine, prices for food wheat old crop at the port dropped to 205-207 $/t, for feed – up to 195-198 $/ton, while wheat of a new crop is trading at 170 and 160 $/t respectively. Such a big difference leaves headroom to drop prices in the coming months.
wheat Exports from Ukraine in the current season amounted to 12.6 million tonnes, which is 5% inferior to last year's figure, however, with the decline in prices, it may not achieve forecasted the Ministry of agrarian policy 16 mln tonnes
winter wheat Crops in Ukraine are in good condition. Weather conditions with low temperatures and moderate rainfall enable you to start sowing spring crops at the optimum time.