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An increase in the forecast of wheat production in Argentina and precipitation in the Black Sea region lower exchange prices

Friday’s collapse in world oil prices by 13-15% led to a drop in stock indexes, which increased pressure on the quotes of cereals and oilseeds. This week, wheat prices will remain under pressure from forecasts of lower demand due to new restrictions and lockdowns, as well as increased production in Australia and Argentina.

The Buenos Aires Grain Exchange increased its forecast for wheat production in Argentina by 0.5 million tons to 20.3 million tons due to its good yield.

  • December European wheat futures on Paris Euronext after rising early last week to a record 311.5 €/ton on Friday fell by 6.25 €/ton to the previous week’s level of 299.25 €/ton or 3 337.5/ton.

On the US stock exchanges, the working day was reduced on Friday, so trading activity was low.

According to the weekly report of the USDA, wheat export sales for the period November 12-18 almost doubled to 567.5 thousand tons, and in general in the season reached 14.2 million tons out of the projected 23.4 million tons for exports.

December futures on US stock exchanges fell:

  • by 2 2.39 / ton to Чикаго 305.1 / ton for soft winter SRW wheat in Chicago,
  • by 1 1.19/ton to.319.7 / ton for hard winter HRW wheat in Kansas City.

However, hard spring HRS wheat in Minneapolis rose in price by 1 1/ton to 3 382/ton.

December Black Sea wheat futures on Chicago SWOT on Friday fell by п’ятницю 1.75/ton to 3 345.25 / ton, and this week will remain under pressure from falling prices for American and European wheat.

In Ukraine, purchase prices for food wheat decreased in ports by 2 2-5/ton to 3 325-328/ton, but Hryvnia prices due to the devaluation of the national currency remained at the level of 10000-10150 UAH/ton.

Precipitation that will take place during the week in Ukraine and in the south-west of Russia will improve the condition of winter crops, which will reduce concerns about the fate of the future crop and the impact on prices for new crops, which are now at the level of 2 290-300/ton for deliveries to the port.

Today, Egypt’s GASC will hold an international tender for the purchase of flour-milling wheat, which will provide the market with additional price indicators.

 

GrainTrade

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