Tender in Egypt will accelerate the fall in prices for Russian wheat

2021-02-03 12:15:15
Machine translation
Tender in Egypt will accelerate the fall in prices for Russian wheat

Purchase of Egypt GASC at yesterday's tender 480 kt European wheat at a price 293,73 $/MT FOB will increase pressure on prices in the physical markets, especially for Russian wheat.

 

In total amount purchased at the tender wheat proportion of French, which for the first time this year became part of the winners, 50%, and the Romanian – 12,5%. This allowed yesterday, European stock exchange quotations of wheat to play the part of a 3-day fall. The market was also supported by the depreciation of the Euro against the dollar to 2-month low of 1,204 $/€.

 

  • the March futures for milling wheat on MATIF rose by 2.5 €/t to 226 €/t or 272,24 $/t

 

the Market for U.S. wheat yesterday traded under pressure from a strengthening dollar and falling neighboring markets of soybeans and corn, which cools accelerate harvesting of soybean and corn planting of the second crop in Brazil.

 

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

  • 2.30 $/t to 236,90 $/t for SRW soft winter-wheat in Chicago,
  • 2.30 $/t to 227,44 $/t for solid winter HRW wheat in Kansas city,
  • 0.74 $/t to 228,17 $/t on a firm spring HRS wheat in Minneapolis.

 

the March futures black sea wheat in Chicago yesterday fell 1% to 281 $/t and the July – 1.7% to 241 $/t On the background of the results of the tender in Egypt it will extend to lower the price of Russian wheat, which now account for 290 $/t FOB.

 

According to the Agency Agricensus, the bid prices of French wheat with protein 11.5% of fell to 285,5 $/t FOB, German with protein 12.5%, up to 285-285,5 $/t FOB, Polish with protein 12.5%, up to of 279.5 $/t FOB, and the Romanian and Bulgarian with protein 12.5%, up to 285 $/t FOB.

 

bid Prices of the Argentine wheat with protein 11.5% of fell to 270-274 $/t FOB for deliveries in February – March.

 

Low activity of buyers increases the pressure on prices and competition between sellers. The European traders are willing to actively lower the price because of the good conditions for winter wheat with warm weather and high rainfall.

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