Wheat prices rose on rumors of China's intent to step up the purchase

Yesterday the price of wheat is actively growing with the support of the outcome of the tender in Egypt and the rumors of China's intent to purchase 2 million tons of American wheat. In addition, Saudi Arabia announced a tender for purchase of 595 thousand tonnes of wheat for delivery in February, which is very interested in traders, especially after the rise of prices in Egypt.

amid improving weather in Canada, Australia and Argentina speculators looking for new factors supporting prices, one of which was the decline of the dollar.

Rumors about the promise of China to buy 2 million tonnes of wheat in the U.S. has stoked the American stock exchange. The market is waiting for a report on weekly export sales, which will demonstrate the actual demand for U.S. wheat. December futures for soft wheat in Chicago rose to the highest since July 19 level.

the December wheat futures in the U.S.ErosLee:

at 2.30 $/t to 158,45 $/t for solid winter HRW wheat in Kansas city

0.55 $/t to 202,82 $/t on a firm spring HRS wheat in Minneapolis.

• at 4.50 $/t to 193,08 $/t for SRW soft winter-wheat in Chicago

the Strengthening of the Euro and 1,1128 $/€ on the background of the signing of the terms brexta with the UK will reduce the attractiveness of European wheat. Besides, experts Strategie Grains increased its forecast of production of soft wheat in the EU 1 million tons to 145.5 million tonnes.

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• But yesterday, the December wheat futures in Paris rose 1.25 €/t to 181,25 €/t or 201,69 $/t after the price for black sea wheat.

In Argentina, with 20% of the area harvested wheat average yield of 2.9 t/ha compared to 3.1 t/ha in 2018 from a projected Harvest of 18.8 to 19 million tons may be reduced to 18.2 million tons.

After the tender in Egypt black sea wheat has risen in price at once for 2-4 $/t Russian wheat protein 12,5% offer 207-210 $/t FOB Novorossiysk for delivery in November, whereas the demand price increased to 202-204 $/t FOB.

In Ukraine the price of wheat also rose and is now in the port:

protein 11,5% - 181-183 $/t or 5200-5250 UAH/t,

forage – 176 to 178 $/t or 5100-5150 UAH/t

• protein 12,5% - 183 to 185 $/t or 5300-5350 UAH/t,