Rainfall in the US and low demand turned wheat prices down

After speculative gains driven by poor winter crop conditions, wheat prices declined yesterday on forecasts for precipitation in the coming days.

On expectations of increased demand for European wheat after the increase from March 1 on Russian wheat, March futures in the EU last week rose to 250 € / t, which was 20 € / t higher than the value of the May contracts. But since Monday the quotes have dropped by 5.3%.

March futures for milling wheat on MATIF fell yesterday by 7.75 € / t to 237.25 € / t or $ 285.8 / t, and May futures – by 2.25 € / t to 229.75 € / t or 277 , 08 $ / t.
Jordan planned to purchase 120 thousand tons of milling wheat at a tender, but was unable to do so.

US wheat exchanges after a speculative jump on Tuesday turned down on Wednesday under the pressure of falling neighboring soybean and corn markets. The strengthening of the dollar worsens the competitiveness of American grain, so experts have lowered their forecast for weekly export sales of wheat from 250-700 thousand tons to 100-500 thousand tons. The heavy rainfall promised in the American Plains also cooled the market.

May quotes in the United States entered:

  • by $ 3.77 / t to $ 241.03 / t for soft winter SRW wheat in Chicago,
  • by $ 3.40 / t to $ 230.01 / t for hard winter HRW wheat in Kansas City,
  • by $ 0.83 / t to $ 236.26 / t for durum spring HRS-wheat in Minneapolis.

In Ukraine, traders offer for wheat 274-276 $ / t or 8700-8750 UAH / t in the port, and processors – 8400-8600 UAH / t with delivery to the plant, which increases the number of offers from farmers.

As of March 3, Ukraine exported 13.77 million tons of wheat, which is 20% less than last year’s rates. According to the signed memorandum, another 3.7 million tons of wheat can be shipped by the end of the season. For traders, the main programs for exporting wheat from Ukraine are calculated until May 1, after which competition will decrease and prices will decrease, so producers need to intensify sales.