There are new factors that lowered stock prices for wheat

on Friday, world stock exchange prices for wheat fell for the fourth consecutive session under the pressure of complex of unfavorable factors.

Main news was the decision of India to conduct the export sale of wheat. The government turned to Egypt with a request to purchase surplus wheat from the crowded warehouses of the Food Corporation (FCI). This year the stocks of wheat rose to 32.8 million tons, compared with up 27.12 million tons last year, as the country significantly increased acreage. To avoid surplus in the domestic market the government has introduced a program of sales inventory 2019/20 MG, and by reducing the price of sales increased to 10 million tonnes But this has not solved the problem of a too abundant harvest, it was therefore decided to boost exports.

According to the forecast of Acclaime management savesafety India (NCML), in 2020 wheat yield may increase compared to the previous year by 6% from 102 to 109 million tonnes, which will become a historical record.

entering the world market, a new seller of wheat, Expat which to subsidize the state, increase competition between unsold wheat stocks in US, EU and Russia, which, according to Agency estimations IKAR, in 2020 will also collect a good harvest of wheat at 79 million tons.

Also it is not yet known how the epidemic coronavirus impact on the global economy and trade of grain. Therefore, against the background of uncertainty investors in the US on Friday sold the contracts and sought safer assets. On the back of speculative sales March wheat futures in Chicago for 6 days fell by 9.83 $/t

March wheat futures in the U.S. fell:

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2.02 $/t to 171,04 $/t for solid winter HRW wheat in Kansas city

1.01 $/t to 196,12 $/t on a firm spring HRS wheat in Minneapolis.

• 2.48 $/t to 203,46 $/t for SRW soft winter-wheat in Chicago

Restoration of port in France and an increase in supply from manufacturers led to the fall of prices in the EU for 1-2 €/t

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• March futures for milling wheat on MATIF fell 1.25 €/t to 191 €/t or 211,95 $/t

To win French wheat in the latest tender in Egypt, the price of Russian wheat reacted decrease to 226-228 $/t FOB.

According to the Ministry of agriculture of the Russian Federation, as of January 28, the weekly exports of wheat amounted to 672 thousand tons, and from the beginning of the season to 23.5 million tonnes, which is 13% below the corresponding period last year.

Ukraine per week exported 301 thousand MT of wheat since the beginning of the season to 15.9 million tonnes, which is 37% higher than at the same date in 2019