The slowdown in the global economy increases the pressure on wheat prices

the Main factors influencing the exchange's wheat prices remain uncertain yield of wheat in major exporting countries and a possible decline in world demand for food.

 

the IMF Experts said that the pandemic Covid-19 has caused the world economy to a greater extent than previously thought, so in the updated report has increased compared to the April estimates of the forecast decline in the world economy from 3% to 4.9%, in particular for Eurozone countries – from 7.5% to 10.2% and the USA up to 8%.

 

In the USA wheat yield while better than in the past, whereas the primary data from Europe talking about heterogeneous productivity lower than last year.

 

the

• September futures for milling wheat on MATIF remained at the level of 177 €/t, however, due to the depreciation of the Euro against the dollar to 1,125 $/€ dollar price fell to 199,08 $/t

 

On the physical market of the European wheat for delivery in July and August is traded at $200/MT FOB, which will support the quotes of the black sea wheat at the same level.

 

bid Prices of black sea wheat remain at the level of 200 $/ton FOB for shipments in July-August, whereas the demand price does not exceed 195 $/MT FOB. On the stock exchange CME July futures for black sea wheat rose 0.4% to 197,50 $/t in August by 0.3% to 197 $/t

 

the price of wheat in the United States fall under the pressure of active harvesting at a rate higher than last year and average 5-year performance. Additionally they pressure the strengthening of the dollar.

 

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

the

1.38 $/t to 158,45 $/t for solid winter HRW wheat in Kansas city.

• 1.74 $/t to 176,83 $/t for SRW soft winter-wheat in Chicago

Increased by 0.55 $/t to 189,69 $/t hard spring HRS wheat in Minneapolis.