The recovery of exports from Romania and tender in Egypt pressured prices of black sea wheat

Thursday news accelerated the fall of prices in the world wheat market. The Romanian government abolished the embargo on grain exports, which operated 6 days and caused severe criticism from the European Commission. Precipitation in the Central part of Russia reduce anxiety about the future harvest in the main wheat exporter last season.

In Ukraine, precipitation was minimal, and in the next 10 days they are no longer welcome. According to the USDA, the amount of precipitation since March 1, was the lowest for 30 years.

Egyptian GASC tender on 16 APR bought 180 KMT of French and 60 TMT of Russian wheat for delivery from 21 may to 5 June at an average price of 240,46 $/t FOB or 251,79 $/t CFR, which is by 0.81 $/t higher than the purchase price of 120 thousand tons of Russian wheat in a tender held earlier in the week. Offers of Russian wheat on FOB basis was 7-8 $/t higher than the French and 10-11 $/ton, than the us. However, U.S. winter wheat although the best price on FOB lost the auction.

the price of wheat in the United States fall under the pressure of falling export demand and improving weather conditions in Russia and the regions of cultivation of wheat in the United States. May futures on soft wheat in Chicago rallied to fresh 4-week low.

For the week, export sales of old crop wheat from the United States fell to 178,3 thousand tons, but sales of new crop increased to 419,4 thousand tons thanks to the active purchases from China. Actual exports for the week rose by 90% to 720,9 thousand tons and since the beginning of the season amounted to 20.8 million tonnes, which is 8% higher than the corresponding figure 2018/19 Mr.

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

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3.49 $/t to 172,69 $/t for solid winter HRW wheat in Kansas city

2.85 $/t to 186,01 $/t on a firm spring HRS wheat in Minneapolis.

• 3.86 $/t to 194,65 $/t for SRW soft winter-wheat in Chicago

European wheat rose in price yesterday on the background of victory in Egypt for the lower crop forecast in the EU. Due to the reduction in sowing areas and dry weather experts Strategie Grains has lowered the forecast of production of soft wheat in EU 2020/21 MG 1.7 million tonnes to 135 million tonnes, which is 8% lower than the level of the current season.

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• the May wheat futures in Paris rose to 1.75 €/t 196,5 up to €/t or 213,65 $/t

wheat Exports from the ports of Rouen and La Pulls for the week amounted to 338,8 million tonnes, among the buyers in addition to Algeria and Morocco was again China, which bought 65 thousand tons.

Buyers are less interested in expensive Russian and Ukrainian wheat for fear of export restrictions. Russia for 15 days of April, have chosen 38% of quotas with 7 million tonnes.

the depreciation of the Turkish Lira to 20-month low to reduce the ability of local importers of Russian wheat. Bid prices of Russian wheat protein 12,5% for may shipments remain at 235 $/t FOB. But because of the low demand, the sellers will be forced to lower prices to enhance sales.