During the week the price of purchasing wheat protein 12,5% increase in Egypt for 9 $/ton, and the price of black sea wheat rose to 210-215 $/t FOB, which is higher than the stock market. Export potential of Russian wheat has not been exhausted, as the pace of exports this season is much inferior to last year.
The experts of “APK-inform” has increased the forecast of wheat production in Russia in comparison with 2018 7.4% to 77.5 million tonnes as of October 16, from 97.7% of the area harvested and 77.3 million MT of wheat with a yield of 2.82 t/ha (2,78 t/ha in 2018).
December futures for milling wheat on MATIF rose to 1.75 €/t to 180 €/t or 199,37 $/t on evidence that French wheat was the cheapest on the tender in Egypt.Prices supported by speculative growth of prices for soft wheat in Chicago. According to Euronext, for the week, speculative funds 20 000 reduced short positions in wheat, almost closing net short the market that existed since the beginning of August. This suggests that traders do not expect further price growth.
December futures for soft wheat in Chicago on Wednesday rose due to speculative buying amid rising prices for black sea wheat and higher prices for the tender in Egypt. Although U.S. wheat did not participate in the auction, a significant increase in price significantly supported the market.
December wheat futures in the U.S.:
at 2.30 $/t to 188,58 $/t for SRW soft winter-wheat in Chicago,for of 1.38 $/t to 156,16 $/t for solid winter HRW wheat in Kansas city by 1.84 $/t to 202,27 $/t on a firm spring HRS wheat in Minneapolis.Russian wheat will continue to go up, but traders are not too happy about this, as reduced demand from buyers. The rapid growth of prices was caused mainly by speculative processes, not real factors.