The results of the tenders and the acceleration of harvesting are lowering the prices of wheat

The weather is contributing to the acceleration of wheat harvesting in the Northern Hemisphere, where crop forecasts are generally confirmed, and the results of the latest tenders indicate a gradual decrease in the purchase price.

Harvesting is accelerating, and in the USA winter wheat has already been harvested on 82% of the area (90% last year). In Russia, 43.9 million tons of wheat were threshed from 9.9 million hectares or 54% of the area, with a yield of 4.43 tons/ha, which is significantly higher than last year.

According to the Ministry of Agriculture, 12 million tons of grain were threshed from 3.5 million hectares in Ukraine with an average yield of 3.43 tons/ha, and the production forecast was increased by 5-7 million tons to 65-67 million tons.

Importers have been active in international wheat tenders this week, with prices falling below $400/t with delivery, although they reached $440-480/t C&F in early June.

The Tunisian state agency ODC purchased 100,000 tons of wheat at a price of $389.86-392.86/ton C&F.

Jordan purchased 60,000 tons of wheat at a tender for delivery in January 2023 at a price of $404/t C&F.

On August 2, the Algerian agency OAIS purchased 660,000 tons of food wheat at a tender for delivery in September-October 2022 at a price of $384/t C&F.

In July, the European Union exported 1.77 million tons of wheat, which is 12.7% more than last year, which indicates the high competitiveness of European wheat against the background of the lack of offers from Ukraine. The main importer of European wheat remains Morocco, which bought 430,000 tons in July.

Yesterday, wheat quotations on world exchanges decreased again:

• by 1.4% or $4.04/t to $280.6/t – September futures for soft winter SRW wheat in Chicago,
• by 0.8% or $2.48/t to $307/t – September HRW hard winter wheat futures in Kansas City,
• by 0.2% or $0.74/t to $321.6/t – September HRS durum wheat futures in Minneapolis,
• by 0.4% or $1.5/t to $348.25/t – August futures for Black Sea wheat in Chicago,
• by 0.6% or €2/t to €337/t or $342.5/t – September wheat futures on Paris Euronext.

Black Sea wheat still remains the most expensive, despite forecasts of a record harvest in the Russian Federation, as traders do not believe in a quick recovery of exports from Ukrainian seaports.

In Ukraine, there is export demand for wheat only in the Danube ports, and the prices are $180-200/t or UAH 6,000-7,400/t. At the same time, processors have intensified purchases of wheat, especially high-quality, with delivery to the mill and are raising prices for it.

Tags: Ukraine, Algeria, EU, prices, wheat, USA, Jordan, Tunisia, Morocco