Steep US corn price rise drove wheat prices up
The sharp decline in the US corn stocks at the beginning of the season (September 1st) from 62.1 mln t to 53.6 mln t shocked the market and led to a strong price spike. This price increase supported the durum wheat price quotations in Chicago, Grain Trade reports.
However, durum wheat prices declined influenced by warm and dry weather forecasts in Canada and the Northern United States where rainfall delayed spring wheat harvesting.
The December futures for the US wheat adjusted as followed:
- added USD 1.10/ton and increased to USD 183.26/ton for SRW in Chicago;
- lost USD 1.29/ton and declined to USD 151.20/ton for HRW in Kansas City;
- lost USD 4.23/ton and declined to USD 195.84/ton for HRS in Minneapolis.
Experts noted that against the backdrop of rising prices Egyptian GASC was to hold another tender for the purchase of wheat, which would determine further price trends.
The recovery of the euro against the dollar to 1.093 $/€ has slightly reduced the competitiveness of European wheat, yet it is still cheaper than the Black Sea wheat.
Ukrainian wheat with a protein content of 11.5% with delivery in October-November is traded at 190-192 $/t FOB, European wheat with a protein content of 11% — 187-189 $/t FOB.
As a reminder, since the start of 2019/20 Ukraine exported 8.63 mln t of wheat. As of October 1st, Ukraine delivered to foreign markets 13.59 mln t of grain and leguminous crops.
