Wheat prices rose on the results of the Egyptian tender
Egyptian tender for purchase of wheat has intensified the exchange trade, while continued weekend in Ukraine and Russia nearly halted trade since the end of December.
- the March wheat futures in Paris yesterday rose 1.5 €/t to 7-month high of 190 €/t or 211,2 $/t on the background of active export of wheat from EU and black sea wheat price rise, and with the support of a tender in Egypt.
winter wheat in the EU, Russia and Ukraine are mainly in good condition, and forecasts of a warm winter does not give grounds to worry about the fate of the next harvest. Active export demand and rising prices for oilseeds and fodder crops raise prices on the physical market.
Escalation of relations between the U.S. and Iran keeps the tension of the commodity markets. However, yesterday's statement trump that the United States would not respond to the shelling by Iran of U.S. bases led to the decline in oil prices and rising wheat prices.
the Wheat market is supported by projections of reductions in sowing areas of winter wheat in the United States and the rise in price of black sea wheat. Traders await Friday's USDA report with the forecast of sowing areas, which are still analysts estimate at 29.9-32.2 million acres, for an average of 30.6 million acres that will become at least the past 110 years.
the March wheat futures in the U.S.:
1.75 $/t to 175,40 $/t for solid winter HRW wheat in Kansas city
0.27 $/t to 203,90 $/t on a firm spring HRS wheat in Minneapolis.
- at 1.10 $/t to 204,52 $/t for SRW soft winter-wheat in Chicago
the Growth rates for black sea wheat in a tender in Egypt to 232,23 $/t FOB support prices for Russian and Ukrainian wheat. On the physical market of the Russian wheat protein 12,5% offer 222-226 $/MT FOB, while buyers are willing to pay no more 216-218 $/t FOB.
the Buyer from Thailand refused the purchase of feed wheat as a cheap offer on the tender with delivery in may-June had a price of 252 $/t CFR, which is much higher than the cost of feed corn.
Low demand and increased supply in the spring will put pressure on prices of black sea wheat. Besides, intensified competition from wheat from the EU, which until the end of the season you want to export 18 million tons.