High Demand Maintains Wheat Prices
Tenders were held last week in Egypt and Algeria, supporting the price of wheat on world exchanges. Egypt purchased 415 thousand tons of Russian, French, and Ukrainian wheat at the tender.
On Wednesday, the marketplace in Chicago began to win back its lost positions. American wheat, which fell in price significantly last week, became more competitive in world markets, which was confirmed by the latest Egyptian tender. Although wheat from the US did not win there, it showed a very attractive price on FOB terms.
The depreciation of the US dollar has also had the supporting effect on wheat prices.
The quotes of wheat in the US increased:
In Chicago, by $ 2.02 per ton to $160.20 per ton on soft winter wheat (SRW),
In Kansas City, by $ 1.75 per ton to $164.33 per ton on hard winter wheat (HRW),
In Minneapolis, by $2.94 per ton to $198.60 per ton on hard spring wheat (HRS).
On the French MATIF, quotes of milling wheat on Wednesday increased by €1.75 per ton to €172.50 per ton or $183.39 per ton. With the optimistic results of Algerian and Egyptian tenders, stockbrokers made speculative purchases.
In the last few days, the grain from France demonstrated good competitiveness, so traders were confident of winning the tender even before summing up the bids.
European exporters predicted a victory for the French grain at the Algerian tender, where 700 thousand tons of wheat were purchased.
In Ukraine, wheat prices continue to decline due to a reduction in export demand from India. Hopes are that the victory at the Egyptian tender will support prices.
The current wheat prices in Ukraine are as follows:
2 grade 169-170 USD or 5300-5350 UAH per ton,
3 grade 167-170 USD or 5200-5320 UAH per ton,
Feed 158-161 USD or 4900-5150 UAH per ton.