The increase in wheat prices in Chicago supports the world's stock exchanges

2019-09-24 12:07:53
Machine translation
The increase in wheat prices in Chicago supports the world's stock exchanges

the Growth of quotations of spring wheat in Minneapolis at 2.5% supported the world price of wheat by a decline in weekly export shipments.

 

Rainfall in North Dakota and Montana delayed the harvest of spring wheat and impairs grain quality, which yesterday HRS-wheat has risen by 4.78 $/t 197,4 up to $/t

 

According to the USDA, as of 22 September in the States of Montana and North Dakota spring wheat collected at 80% and 85% of the area and in the whole country, 87% of the area compared to 97% on average for 5 years.

 

Additional factor influencing prices was the forecast of rain which will start on Thursday, and in Montana with snow and frost down to -5 degrees. Wheat in North Dakota has a low falling number and fungal infections.

 

the Market expects the data collection of spring wheat in Canada, which also delays the precipitation, and the forecasted frost can damage the crop.

 

the week USA reduced the export of wheat by 8% to 476,1 million tonnes, which is 11% higher than the corresponding figure 2018

 

the December wheat futures in the U.S. had the following dynamics:

0.37 $/t to 150,46 $/t cheaper solid winter HRW wheat in Kansas city

by 4.78 $/t to 197,40 $/ton rose solid spring HRS wheat in Minneapolis.

  • 0.46 $/t to 177,47 $/t cheaper winter SRW soft wheat in Chicago

 

the depreciation of the Euro against the dollar increases the competitiveness of European wheat. Although the rate of exports fell for the week, the EU exported only 132,3 thousand tons, which is the minimum of the current season. Overall in the season exported 5.6 million tons, which is 36% higher than the corresponding figure 2018

 

  • the December milling wheat futures in Paris rose 0.5 €/t to 171,75 €/t or 188,75 $/t

 

the Strengthening of the hryvnia and the ruble lowers purchasing prices in Ukraine and Russia, which hinders export sales, but lack of funds and expensive Bank loans force producers to sell grain at low prices.

 

in Ukraine In the beginning of the season farmers were actively selling wheat, exporting remains active and has increased over the week from 662 to 836 thousand tons.

 

In Russia, first manufacturers constrained sales, and now activate them, so exports of wheat during the week has increased from 631 to 778 thousand tons.

 

With the beginning of the month, the ruble has strengthened against the dollar by 5%, what purchase price for wheat of 12.5% fell to 11200 rubles/t or 175,5 $/tonne CPT Novorossiisk, when handling price of $15/ton is equivalent to 190 $/t FOB and much higher than the export bid price.

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