Despite an increase in supply from Australia and Argentina, wheat prices remain high
The World’s wheat exchanges remain under pressure of the uncertainty caused by elections in the US, rising oil prices and soybeans, as well as reducing demand from buyers, who are awaiting the outcome of the harvest in Australia and Argentina, where prices are gradually falling.
Amid the tense situation with the presidential election, investors have been speculative purchases of wheat exchanges, however Chicago ended with a minus, “remembering” significant global supply of wheat.
December futures U.S.:
The 1.75 $/t to 204,66 $/t on a firm spring HRS wheat in Minneapolis.
1.01 $/t to 205,67 $/t for solid winter HRW wheat in Kansas city
Fell 0.73 $/t to 222,66 $/ton SRW soft winter-wheat in Chicago.
European wheat rose in price, with the support announced in several countries-importers of the procurement tenders and of the high demand for French wheat from China, which graded the concerns about the strengthening of quarantine in the EU and political instability in the United States.
The December futures for milling wheat on MATIF rose by 1.5 €/t to 206,75 €/t or 242,26 $/t
According to the weekly report Euronext, the number of long positions in wheat rose by 1% to 300.7 thousand lots, and 3% to 186 thousand lots, which increases speculative demand in the market.
Importers are expecting lower prices and Jordan canceled tender for the purchase of wheat. The outcome of today’s tender of GASC in Egypt will show the willingness of importers to buy expensive wheat.
As a Result of the appreciation of the Euro relative to the dollar prices for European wheat rose again up to 245-250 $/MT FOB that will contribute to the growth of prices of offers of Russian wheat.
In Australia and Argentina as entering the market of new crop wheat prices fell to $260/MT FOB and 245 $/MT FOB, respectively.
The World price for wheat in the near future will remain under pressure of the new crop of wheat from Australia and Argentina, but lower prices will limit the precipitation deficit for winter wheat in the United States and Russia.
Read also
Wheat in Southern Brazil Impacted by Dry Weather and Frosts
Oilseed Industry. Leaders and Strategies in the Times of a Great Change
Black Sea & Danube Region: Oilseed and Vegoil Markets Within Ongoing Transfor...
Serbia. The drought will cause extremely high losses for farmers this year
2023/24 Safrinha Corn in Brazil 91% Harvested
Got additional questions?
We will be happy to assist!
Write to us
Our manager will contact you soon