Wheat prices are rising because of a rise in price of Russian grain
on Thursday, the wheat has risen in price on the physical market and on world markets. The driver of increase of quotations is the rise in prices of Russian wheat, which have long been preferred importers due to the lower price than the American and European grain. However, at yesterday's tender in Egypt Russian wheat was only 5-9 $/t cheaper than Europe, and the uncertainty of prospects of its further exports will continue to heat up prices.
- the depreciation of the Euro increases the competitiveness of the French wheat quotes which yesterday rose 1.5 €/t to 202,75 €/t or 233,41 $/t
Speculative fall on Wednesday on the U.S. stock exchanges on Thursday changed the speculative growth. Prices supported the corn market that is growing thanks to active exports on the background of prolonged rainfall in the corn belt of the United States.
Growth stock prices in the US limited a significant global supplies and poor export demand for wheat in the United States. Weekly sales declined 34% to 435 thousand tons, which is 11.6% lower than the level of last year, and export shipments compared with the corresponding week in 2017 decreased by 25.5% to 317 thousand tons.
the December futures for U.S. wheat has increased:
1.29 $/t to 191,89 $/t for solid winter HRW wheat in Kansas city
- 1.01 $/t to 190,33 $/t for SRW soft winter-wheat in Chicago
No level changes 216,69 $/t remained firm spring HRS wheat in Minneapolis.
According to Buenos-Iresco corn exchange, due to favorable precipitation, sowing of wheat is quite active, and now sown for 53.6% of the planned areas, but frost and hail may damage the seedlings. Wheat production in Argentina in 2018/19 MG is estimated at 19.7 million tons against 19.5 million tons in the forecast USDA.
