Wheat prices are rising because of the hot and dry weather
On the stock exchanges of the U.S. and European wheat prices on Friday and Monday reached 10-month highs and continue to grow today. The driver of growth are forecasts of dry weather with temperatures up to 30-35 degrees for the next decade in the regions of cultivation of wheat in the United States, Ukraine and Russia.
In Chicago July futures for soft wheat increased by 3.7% and crossed the psychological threshold of $200/t
the July wheat futures in the U.S.:
by 5.51 $/t to 207,23 $/t for solid winter HRW wheat in Kansas city
3.49 $/t to 236,72 $/t on a firm spring HRS wheat in Minneapolis.
- by 4.68 $/t to 202.00 $/t for SRW soft winter-wheat in Chicago
After the Chicago French market wheat on Friday and reached a maximum 10 months, and on Monday, the United States was a holiday, futures milling wheat on MATIF rose 1.25 €/t to 183,75 €/t (213,7 $/t).
the experts of the Institute ICAR has reduced the forecast of wheat production in Russia compared to the previous report to 3 million tonnes to 69.5-77,5 million tons, which led to higher prices for wheat.
the harvest has reduced due to dry weather in southern Russia and also, although to a lesser extent, through excessive precipitation in the Urals and Western Siberia, where farmers are unable to hold the North, while the optimal sowing time to leave.
As of may 28 spring wheat in Russia is planted 61.7% of the forecast 8 million hectares compared to 11.4 million hectares in 2017.