Wheat prices in US rallied
Following the stock in Paris, the U.S. trading platforms also demonstrated growth on Jan. 21 amid rising demand from importers and possible imposition of a duty on Russian wheat, Grain Trade reports.
"After the change of the Russian government, Dmitry Patrushev retained his cabinet position as the Head of the Ministry of Agriculture, so the bill on the quota of grain exports within 20 mln t in H2 2019/20 is likely to be adopted soon. This has led to an upward trend in demand from Iran, Pakistan and Bangladesh for 12.5% protein Russian wheat, the supply prices for which rose to 230-232 $/t FOB, and the demand prices to 229 $/t FOB," the message reads.
In the U.S., speculations with prices continued to warm up the market against the global trend of wheat export prices strengthening and the limited supply of wheat in the country. Even a 22% decline in weekly wheat exports to 435 thou. t could not lower the quotations.
The March futures for the US wheat adjusted as followed:
- added USD 4.04/ton and increased to USD 213.66/ton for SRW in Chicago;
- added USD 2.11/ton and increased to USD 183.72/ton for HRW in Kansas City;
- added USD 0.83/ton and increased to USD 206.59/ton for HRS in Minneapolis.
Since the start of 2019/20, Ukrainian seaports have shipped 33.87 mln t of staple grains for export vs. 26.27 mln t in the prior season's comparative period. As of Jan. 20, commodities shipment increased by 7.59 mln t (29%) from the comparative period of the previous year.