Wheat prices rebounded after falling, despite an improvement in the U.S. crop

Prices for U.S. wheat are gradually recovering after falling by 3-4% at the end of December, despite the improvement of crops in the United States.

According to the USDA, as of December 31, the number of crops in good or excellent condition increased compared to the end of November in Kansas from 36% to 43% (19% last year), Oklahoma – from 53% to 67% (38%), Texas – from 46% to 49%, South Dakota – from 52% to 54% (16% last year), but decreased in North Dakota from 71% to 50% (48% last year).

March wheat futures rose yesterday:

• by 2.2% to 225.4 $/t – for soft winter SRW wheat in Chicago (-3.7% for the week),
• 0.7% to 229,9 $/t – for hard winter HRW wheat in Kansas City (-2.7%),
• by 0.4% to 261,3 $/t – for hard spring HRS wheat in Minneapolis (-2.5%),
• by 0.9% to 221.25 €/t or 247.3 $/t – for wheat on the Paris Euronext (-0.3%).

According to Reuters, wheat stocks in India as of April 1 will exceed the buffer rate (7.46 million tons), although against the background of grain sales from the state reserve as of April 1, they decreased to a 7-year low of 16.47 million tons. Since June 1, the government has sold 5.8 million tons to stabilize prices.

In Ukraine, amid rising dollar, the purchase price of feed wheat rose to 6400-6500 UAH/t or 157-158 USD/t with delivery to the Black Sea ports, while the premium for milling wheat is 20 USD/t or more.

Tags: wheat, India, USA, Ukraine, prices