Tender in Egypt and precipitation in the United States lowered the world price of wheat

Forecast heavy rainfall in the regions of cultivation of winter wheat in the United States and the results of the Egyptian tender, where purchase prices were down to $14/ton, lowered the price of wheat on the markets and the physical markets.

Egyptian GASC at yesterday's tender acquired 360 thousand tons of Romanian wheat flour with delivery 15-25 April 2021 at a price 281,49 $/t FOB + freight of 15.91 $/t = 297,4 $/t CFR, which is 12.2 $/t FOB or 14,18 $/t CFR is lower than in the previous tender on February 2, when it was purchased 480 thousand tonnes of European wheat.

the Wheat was purchased from Cofco – 60 thousand tons, Ameropa – 180 thousand tons, Grain Export – 120 thousand tons of Ukrainian wheat was offered at 283,8-KD 287.5 $/t FOB, Russian – at 285-293 $/t FOB, and the most expensive was the French with the price 291-298,9 $/t FOB.

the French Market of wheat yesterday continued to fall. If on Tuesday and Wednesday pushed in the tender held in Algeria, where it was purchased primarily French wheat, yesterday increased the pessimism tender in Egypt, where the French wheat was the most expensive and uncompetitive.

• the May futures for milling wheat on MATIF fell by 3 €/t to three-week low 224,5 €/t or 268,93 $/t

wheat Prices in the U.S. declined under the pressure of the better weather and the unsatisfactory pace of exports.

Export sales of US wheat although grown for a week at 50% of $ 329.5 million tonnes, and since the beginning of the season made up 24.12 million tonnes, still too low to reach the USDA projected level.

the Actual exports for the week rose by 15% to 468,7 kt, but only in the season was 18,09 million tons projected USDА of 26.8 million tonnes, So the next 3 months you want to export 725 thousand tons of wheat every week, it will be important to do in the background to improve the prospects of the new harvest and the decline in prices and volume of purchases by buyers.

the May futures fell:

• by 3.67 $/t to 236,07 $/t for SRW soft winter-wheat in Chicago,
• for 4,50 $/t to 222,02 $/t for solid winter HRW wheat in Kansas city,
• by 2.66 $/t to 232,95 $/t on a firm spring HRS wheat in Minneapolis.

In Ukraine, the procurement price of wheat at the port fell to 8500-8550 UAH/t or 268-270 $/t, and today we'll watch for further reduction of prices for black sea wheat.