In the first week of the new year, wheat prices hit a new high

on Tuesday, March French wheat futures rose to the highest since August 2018 level – 219 €/t, after which the two day traders took profits. However, on Friday prices rose again amid uncertainty with the export of wheat from Argentina and Russia.

bid Prices of Russian wheat increased to 270-275 $/t FOB, but the actual transactions were not, as the black sea market has not yet returned to work after the long weekend.

This week in some regions of Ukraine and in the South and in the center of Russia will be precipitation in form of snow protects winter wheat from the cold that will come at the end of the week.

In the black sea region in the beginning of the year the winter crops were mostly good, and rainfall mostly above normal, although unusually high temperature precipitation took place in the form of rain, not snow. While in the South of Russia there is a deficit of moisture.

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• the March futures for milling wheat on MATIF rose by 2.25 €/t to 2-year high 216,75 €/t or 264,96 $/t

on Friday, traders in Chicago recorded the net profit after the March wheat futures on Tuesday reached a 6-year high against the background of deterioration of the winter wheat crop in some US States and the rapid growth of neighbouring markets of soybeans and corn. In regions of winter wheat production in the United States during the week of rain and frost expected and temperatures will be above normal.

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

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1.38 $/t to 218,53 $/t for solid winter HRW wheat in Kansas city.

• 1.29 $/t to 234,70 $/t for SRW soft winter-wheat in Chicago

Rose by 1.65 $/t to 223,31 $/t hard spring HRS wheat in Minneapolis.

South Korean manufacturer of animal feed - Major Feedmill Group (MFG) tender on January 7, where he planned to buy 65 thousand tons of feed wheat of optional origin, rejected all proposals because they had a price 290-295 $/t C&F for shipments in may-June, whereas the company counted for a maximum of 275 $/MT C&F.

Experts exchange Buenos Aires increased the forecast of wheat production from 16.8 to 17 million tons due to improved yields upon completion of cleaning.

Traders expect tomorrow's USDA report will be corrected predictions of wheat production for Australia and Argentina, where nearly complete collection, and the estimation of sowing areas of winter wheat in USA that will lower the price of wheat.