Wheat prices fall, due to the favorable harvesting weather

Warm and dry weather in the Ukraine, US, EU and Russia contributes to the active collection of wheat and receiving good quality and high yield.

In the U.S. collected 69% of winter wheat compared to 79% on average for 5 years, in Ukraine – 68% whole wheat.

Experts IKAR has lowered the forecast of wheat production in Russia in 2019 with of 77.4 to 76.1 million tonnes.

Analysts at Agriculture and Agri-Food Canada (AAFC) reduced compared with the June forecast estimate of the wheat crop in Canada in 2019/20 MG 1.9 million tonnes to 32 million tonnes, which will exceed last year's 31.8 million tons.

Active collection of soft wheat in the EU has become the main factor of pressure on prices together with the fall of Chicago to 2-month low. According to forecasts, the average yield in the EU 7.3% higher than last year and 1.6% - the average 5 year old. Favorable weather conditions now exists in Germany and France.

• September futures for milling wheat on MATIF fell by 2.25 €/t to 174,75 €/t or 195,70 $/t

After rising slightly on Friday, the Chicago stock exchange on Monday resumed its fall. Market disappointed with the indicators of the natural weight in the samples of soft wheat in the U.S., but the prices are somewhat supported the growth of the weekly export by 24.2% to 433,1 th T. Improvement of crops of spring wheat also presses on the market.

the September wheat futures in the U.S. fell:

at 3,95 $/t to 157,72 $/t for solid winter HRW wheat in Kansas city

by 2.94 $/t to 191,52 $/t on a firm spring HRS wheat in Minneapolis.

• for 5,60 $/t to 179,03 $/t for SRW soft winter-wheat in Chicago

the increase in the share of grain quality caused a shortage of feed wheat. If before Asian buyers have traditionally bought Ukrainian wheat, they now prefer cheaper and more readily available to Romanian.

European Feed wheat black sea origin offer 184-185 $/t FOB with delivery in August, while prices on the Ukrainian it is not below 187 $/MT FOB.

the Purchase price for domestic wheat rose slightly against the background of small volumes of proposals, as manufacturers do not wish to sell quality grain at prices 20-25% lower than last year.