Precipitation in the USA and the Black Sea region accelerated the fall in wheat prices

Snowfall in the United States, Ukraine and Russia reduces the impact of speculative weather factors on wheat prices, which accelerate the decline against the background of lack of demand.

On the US stock exchanges, wheat futures fell by another 2.6-3.17%, losing 3.2-4.8% of the price in two weeks against the background of precipitation in the form of snow and rain, which replenished moisture reserves and protected crops from Frost. Winter wheat prices fell the most in Kansas City, where frosts were mild and precipitation was heavy. Rain there will continue for another week, and temperatures will not fall below zero.

During December 17-23, only 271 thousand tons of wheat were inspected for export in the United States, which is 20% less than in the previous week.

March US futures fell yesterday:

• by 2.7% or 7 7.53/ton to Чикаго 287.9/ton for soft winter SRW wheat in Chicago (-4% from Monday),
• by 3.17% or 9 9.28 / ton to H 301.9 / ton for hard winter HRW wheat in Kansas City (-4.8%),
• by 2.6% or 9 9.19/ton to.367.3/ton for durum spring hrs wheat in Minneapolis (-3.2%).

Snowfall in Ukraine and Russia, frosts that did not exceed -10…-15 ^OhC, and projected new precipitation and warming in the winter wheat growing zone for the next week improve the condition of weak crops.

The thickness of the snow layer in Ukraine, Russia and on the plains of the United States remains minimal, so there is a risk of damage to crops by Frost. However, there will be no sharp drop in temperatures in the next two weeks.

European wheat fell in price yesterday after American wheat and against the background of low export demand.

• March European wheat futures on Paris ‘ Euronext fell 9 €/T yesterday to 280.5 €/t or 3 317.11/t.
• March Black Sea wheat futures on the Chicago Stock Exchange yesterday fell by 3 3.5/ton to 3 341.25/ton, losing 1.4% in two sessions, but still remain the most expensive on the market.

Egypt’s GASC has announced an international tender for the supply of wheat in February – March, which will become an indicator of prices for Black Sea wheat. Turkey purchased 320 thousand tons of food wheat of any origin, presumably Black Sea wheat, at the tender. Iran has announced a tender for the purchase of 180 thousand tons of food wheat.

Against the background of low export rates of American and European wheat, Canada stepped up shipments. According to Statistics Canada, during December 13-19, the country increased exports of grain and oilseeds by 61% to 903.2 thousand tons compared to the previous week, in particular wheat – by 5% to 199.1 thousand tons, and durum wheat – from 3.4 to 45.4 thousand tons. in general, since the beginning of the season, Canada exported 4.7 million tons of wheat, 1.16 million tons of durum wheat.