Wheat prices are rising because of the unfavorable for sowing weather conditions
Yesterday on the stock exchanges continued speculative rise in wheat prices caused by concerns about the lack of precipitation on the winter crops in the United States and Russia. However, the quotes supported the next tenders in Tunisia, and Pakistan.
According to the forecast, in the next 7-10 days in the regions of cultivation of wheat in the United States, and on the South and center of Russia precipitation is not that will reduce soil moisture reserves. On the other hand, the pace of sowing is higher than last year due to the dry weather.
Russia planted winter crops on 13.4 million ha or 70% of the planned areas, in US winter wheat planted 52% of the area compared to 48% for this date last year and 47% average for 5 years.
According to the USDA, agricultural in 48 States, 47% of crops are experiencing moisture deficit in the upper soil layer, although a week ago the figure was 45%, and a year ago – 27%.
Wheat exchange, the United States began the week with a growth. Driver was exchange in Kansas city, where December futures winter wheat updated 2-year high.
Traders concerned about dry conditions during planting in individual producing countries of the Northern hemisphere – the USA, Ukraine and Russia. However, supported by quotations, the depreciation of the dollar.
December futures U.S.:
by 5.42 $/t to 192,63 $/t for solid winter HRW wheat in Kansas city
1.38 $/t to 196,76 $/t on a firm spring HRS wheat in Minneapolis.
- by 4.04 $/t to 214,67 $/t for SRW soft winter-wheat in Chicago
the European Commission has delayed a report on weekly export of agricultural products for the technical mistake.
- December futures for milling wheat on MATIF rose by €1/t to 197,75 €/t, however, due to the strengthening of the Euro against 1,179 $/€ dollar, the price rose to 233.18 $/t
December futures black sea wheat rose 1.6% to 240 $/t, which will lead to higher prices of Russian wheat on the physical markets to the same level.
In Russia, from 28.5 million hectares, or 96.7% of the produced 86.4 million tons of wheat with a yield of 3.03 t/ha and the gross yield is gradually approaching the record level 2017
bid Prices on the tender for purchase of 300 thousand tons of wheat with a protein of 11.5%, which conducts the Pakistani Agency TSR, are 278,5-290 $/t CFR.