Wheat prices are rising amid strong demand and with the support of the corn market

2020-08-26 12:15:31
Machine translation
Wheat prices are rising amid strong demand and with the support of the corn market

Yesterday amid increased demand from importers and the growth of neighbouring markets of soybeans and corn, wheat prices on the US exchanges played a fall Monday.


Traders also suffer from a dry and cold weather in Argentina, where wheat planted only 6.5 out of a planned 7 million hectares, compared with 6.8 million MT in 2019, and a lack of rainfall of the crop is in poor condition.


Yesterday, the Egyptian GASC bought at the tender 530 thousand tons of Russian wheat protein 12.5% and for October delivery at an average price of 227,98 $/t CFR.


the Ministry of Commerce of Pakistan yesterday at the tender purchased 400 thousand tons of the planned 1.5 million tons of milling wheat with protein 11.5% price 234 $/t CFR for delivery in October and January, presumably produced in Ukraine, Russia or Argentina.


Thai refiners have purchased 101 thousand MT of US wheat for delivery in October-November.


At today's tender the Ministry of industry and trade of Jordan plans to purchase 120 thousand tons of milling wheat of arbitrary origin, and the Turkish Agency TMO – 390 thousand tonnes of food and 110 thousand MT of hard durum wheat for delivery in September-October.


the price of corn and soybeans in the U.S. increased by data about the deterioration of their crops, and behind them rose wheat, despite the fact that the number of spring wheat in good or excellent condition for the week rose by 1% to 71% compared to 69% in 2019.


As of August 23 spring wheat threshed on 49% of the area, which is 17% higher than 2019, but 13% below the average 5-year level.


the September wheat futures in the U.S.:


3.31 $/t to 163,23 $/t for solid winter HRW wheat in Kansas city

by 4.04 $/t to 189,78 $/t on a firm spring HRS wheat in Minneapolis.

  • to 2.39 $/t to 193,73 $/t for SRW soft winter-wheat in Chicago


the Growth of prices for European wheat limits the lack of demand for expensive grain from the EU.



  • September futures milling wheat on MATIF rose by 0.75 €/t to 186.5 €/t or 220,4 $/ton, and December to 1.75 €/t to 184,25 €/t or 217,75 $/t


September futures on the black sea wheat on the stock exchange in Chicago rose 0.5% to 207,5 $/ton, and December – by 0.7% to 218 $/t


On the physical markets bid prices of Russian wheat protein 12,5% increase to 210 $/MT FOB, while the bid prices are 205 $/t FOB.


Experts IKAR has increased the forecast of wheat harvest in Russia from 82 to 82.5 million tons, which increases pressure on the prices of black sea wheat.

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