The start of wheat harvesting against the background of low demand increases the pressure on quotations

World wheat prices continue to fall amid the early start of harvest and low demand for old wheat due to high prices. In Ukraine, grain prices have fallen to regular lows, as there are no prospects for unlocking ports. The weather in general contributes to the formation of the harvest, which forms a downward trend in prices, and the results of harvesting and intensification of demand will soon increase the pressure on the markets.

On Monday, wheat prices in Chicago fell to the lowest level since February 2022 – $ 332.2 / t.

Yesterday traders recorded profits, so futures rose:

• by 1.9% or $ 6.34 / t to $ 338.5 / t – July futures for soft winter SRW-wheat in Chicago,
• by 1.1% or $ 4.04 / t to $ 361.5 / t – July futures for winter winter HRW wheat in Kansas City,
• 0.3% or $ 1.5 / t to $ 382 / t – August futures for Black Sea wheat in Chicago,
• by 1.9% or € 6.75 / t to € 356.75 / t or $ 375.7 / t – September wheat futures on Parisian Euronext.

Against the background of improving weather conditions fell by 0.8% or $ 2.48 / t to $ 380.2 / t – July futures for durum spring HRS-wheat in Minneapolis.

According to the weekly Crop Progress from the USDA, in the United States on June 26, winter wheat was harvested on 41% of the area (10% more than last year), and in good or excellent condition is, as a week ago, 30% of winter crops and 59% spring wheat (48% and 20% last year, respectively).

In France, wheat began to be harvested earlier than last year, and 2% of the area has already been threshed. However, the number of crops in good or excellent condition for the week decreased by 1% to 64%.

According to the European agency MARS, wheat production in Russia will increase by 20% compared to last year to 88.8 million tons, in Kazakhstan – by 28.2% to 14.2 million tons, while in Ukraine will fall by 35% to 23 million tons

The European Commission estimates that the wheat harvest in Romania will fall to 9.3 million tons this year due to a 20% reduction in yield.

Jordan bought 60,000 tons of wheat in a tender with delivery in September at a price of $ 445 / ton C&F.

The Algerian grain agency OAIS last week bought 740 thousand tons of wheat at a tender with delivery in August at a price of $ 445 / ton C&F, – reports Reuters.

In Ukraine, demand prices for food wheat with delivery in July – August to the western border are 260-290 $ / t, with delivery to the port of Constanta (Romania) – 310-330 $ / t, to the Baltic ports – 320-350 $ / t , the ports of Reni and Izmail – 190-205 $ / t or 6600-7000 UAH / t, but international traders have not resumed purchases.

Tags: Ukraine, Russia, Kazakhstan, Romania, Algeria, EU, prices, France, wheat, USA, Jordan