The increase in forecast production lowers the price of wheat

2019-04-03 12:03:44
Machine translation
The increase in forecast production lowers the price of wheat

Active course of planting and adequate rainfall allow to hope for a good wheat harvest in major exporting countries, which puts pressure on prices of new and old crop.

 

the Condition of crops of winter wheat in the US, EU, Ukraine and Russia are much better than last year, and is estimated as good. Sowing of spring wheat in the U.S. is delayed, however, the EU and Russia ahead of the pace last year.

 

On the background of the forecast on the reduction of the acreage under wheat in the United States the may and July futures for SRW wheat in Chicago was nearly leveled in the price and traded at 171-172 $/t

 

the September wheat futures on Euronext are traded on 199,4 $/t or 177,75 €/t 10 €/t lower than may. The reason for the decline in prices was the increase in IGS experts forecast wheat production in the EU in comparison with the previous season by 11 million tons to 149 million tons.

 

the depreciation of the Euro increased the competitiveness of European wheat protein 12,5%, which FOB-Baltic offer for 220 $/t for old crop and 195-205 $/t for a new one. Traders hope that the further devaluation of the Euro will compete with Argentinian wheat on the tender in Algeria which buy the grain for delivery in may-June. The cheapest offer on the tender within 235-236 $/t, however, the organizers expect price 232 $/t

 

black sea wheat with protein 11.5% of the offer at 215-220 $/t FOB for shipments in may and 185-190 $/t FOB for shipments for shipments in JulyAugust.

 

Purchased by the Ministry of trade and industry Jordan 60 thousand tons of wheat with protein 11.5% 222,5 price $/t C&C delivery in September gave the market new price points. The tender took place only after 4 failed attempts, but the purchase price was only 3.5 $/t lower than at the previous auction on February 26.