Export growth to determine the dynamics of wheat prices in the US and the EU

the American and European wheat from the beginning of the week showed mixed trading, in response to actual demand and the pace of shipments.

wheat On US exchanges continues the decline that began Thursday on data of another sharp decline in weekly export sales to 167.7 thousand tonnes For 3 days may wheat futures in Chicago fell by 13 $/t. the prices presses the decline of neighboring market of corn, caused by profit-taking by speculators, and are not supported by even the deterioration of crops of winter wheat.

wheat Exports from the U.S. last week fell by 19% to of 272.8 thousand tons, which is inferior to expert expectations, and 2.4 times less than the corresponding period last year.

According to the USDA, per week (as of February 28), the number of winter wheat crop in good or excellent condition decreased in Kansas by 3% to 37% and in Texas by 2% to 28% in Oklahoma by 2% to 46%.

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

• 3.68 $/t to 238,92 $/t for SRW soft winter-wheat in Chicago,
• by 3.86 $/t to 229.00 $/t for solid winter HRW wheat in Kansas city,
• 1.93 $/t to 232,77 $/t on a firm spring HRS wheat in Minneapolis.

Active Russian wheat exports in February (before the introduction of a fee of €50/ton from March 1, reduced the demand for wheat from other countries. Experts Sovekon increased the forecast of wheat exports from Russia to 1.2 million tonnes to 39.1 million tonnes.

• the March futures black sea wheat remained at 285 $/t and the July fell 0.1% to 242,5 $/t

the Paris stock exchange in spite Chicago rose yesterday amid increasing exports-week to 3-month high – 652 kt Market supported the Declaration of Algeria's long-awaited purchase of the tender and the depreciation of the Euro against the dollar to 1,2047 $/€.

Algerian Agency OAS March 4, will hold a tender for the purchase of not less than 50 thousand MT of hard milling wheat for delivery in April.

• the May futures for milling wheat on MATIF rose by 0.75 €/t to 230,25 €/t or 277,08 $/t

this season, the EU exported to 17.6 million tons of wheat, which is 18% below last year's pace. Over the next 4 months, you need to export more of 9.4 million tons of wheat.