Tender in Turkey and reduction of harvest in Russia support prices for Black Sea wheat

On Thursday and Friday, wheat prices recovered from the fall at the beginning of the week, which stopped the decline in prices for Black Sea wheat.

SovEcon experts lowered their forecast for the wheat harvest in Russia from 76.2 to 75.4 million tons due to low spring wheat yields in the Volga region and beyond the Urals.

As of September 3, 66.9 million tons of wheat with a yield of 2.97 t/ha were threshed in Russia from 22.5 million hectares or 78% of the area. It remains to thresh another 6.2 million hectares of spring wheat, from which 9-10 million tons will be harvested.

Prices for Black Sea wheat were supported by the purchase of 300 thousand tons of wheat with 11.5% protein by the Turkish state agency TMO and delivery on September 10 – October 10 at a price of 3 327.9-336.7/ton C&F, which is 2 27-35/ton C&F higher than at the previous auction in early August.

Over the past two sessions, Black Sea wheat futures on the Chicago Stock Exchange have risen:

• September-by 1 1 / ton to 3 302 / ton,
• December-by 2 2.75/ton to 3 311.75 / ton.

Export sales of wheat from the United States for the week increased by 154% to 295.3 thousand tons, but still turned out to be lower than experts expected. In total, export sales totaled 9.4 million tons in the season, which is 24% lower than last year's pace. Actual exports for the week amounted to 417 thousand tons, and in general in the season reached 5.428 million tons, which is 15% lower than the corresponding indicator last year.

September futures on US stock exchanges closed on Friday, while December futures rose:

• by 3 3.3 / ton to Чикаго 266/ton for soft winter SRW wheat in Chicago,
• by 5 5.14 / ton to H 265.7/ton for hard winter HRW wheat in Kansas City,
• by 4 4.77 / ton to.335.1 / ton for hard spring HRS wheat in Minneapolis.

The European Commission lowered its forecast for the wheat harvest in 27 EU countries in 2021/22 MG from 127.7 to 127.2 million tons, which will still exceed the production of 2020/21 MG by 10 million tons.

• On the Paris Stock Exchange, September wheat futures on Thursday and Friday fell by 7 €/ton to 243.75 €/ton or 2 289.5/ton, approaching the level of December futures, which rose by 1.5 €/ton to 244.5 €/ton or.290.39/ton.