The growth of exchange prices for wheat slowed down despite the emergence of new support factors

The market yesterday expected a decline in exchange prices for wheat against the background of traders fixing profits, but quotes rose again due to increased export sales of wheat from the United States and a decrease in the production forecast for the EU.

According to the USDA, wheat export sales for the week increased by 59% to 617.1 thousand tons, which exceeded expert expectations and exceeded the corresponding indicator last year by 83%. Nigeria acquired more than half of this volume.

Wheat exports for the week increased to the highest level in the last 4 weeks - 514.1 thousand tons, and in general in the season reached 6.33 million tons, which is still 18% lower than last year's pace. The prices of American wheat compete with the prices of European and Black Sea wheat, so exports from the United States are intensifying.

December US futures rose yesterday:

• by 0 0.4 / ton to Чикаго 262/ton for soft winter SRW wheat in Chicago,
• by 1 1.65 / ton to H 264.7/ton for hard winter HRW wheat in Kansas City,
• by 0 0.64/ton to.333.1 / ton for hard spring HRS wheat in Minneapolis.

Strategie Grains experts in September lowered their forecast for wheat production in the EU in 2021/22 MG by 2.4 million tons to 129.1 million tons due to low yields in France, Germany, Poland and the Scandinavian countries. According to their estimates, the share of wheat with a natural weight below the minimum for grinding in the EU will be 40%, while last year it was 27%.

Chinese importers have reduced the requirements for the full weight of French wheat from 770 to 750 g/l. experts believe that only 30% of French wheat of the 2021 harvest will have a natural weight above 770 G/L.

• December wheat futures on Paris ' Euronext rose another €0.25/ton yesterday to €248.75/ton or.292.76/ton.

The depreciation of the euro against the dollar increases the competitiveness of European wheat.

In Ukraine, the share of food wheat of the 2021 harvest also decreased to 50-60% compared to 70-80% last year. Traders require a minimum nature at the level of 750 g/L, although according to the Ukrainian Dstu for wheat with protein 11.5%, it is 730 G/L.

In Russia, according to the Rosselkhoz center, out of the surveyed 21% of the 2021 wheat harvest, 84% corresponds to food indicators, of which 40% of wheat has gluten over 23%, and 43.5% - over 18%.