Wheat prices in Chicago gained sharply: Agritel

Wheat prices rose sharply yesterday, May 27, both on the technical side and on fears of water shortages in the northern Great Plains of the USA, the Agritel consultancy reports.

"Corn was supported yesterday by the recent selling activity to China, coupled with the fact that export sales did not show large volumes cancelled, contrary to rumours in recent days. Initial estimates of corn imports by China for the coming season stand at 26 mln t," the message reads.

As reported, Saudi Arabia is looking for 720,000 t of wheat and the US has sold 152,400 t of 2021 crop corn to an undisclosed destination. There are three ports of discharge and the merchandise is expected to arrive between 10 July and 30 September.

The European Commission has revised upwards the EU wheat production for the next season to 126.2 mln ts from 124.8 mln t estimated last month. However, end-of-season stocks for 2021/22 have been revised downwards to 10.8 mln t from 11.4 mln t last month. Exports outside the EU zone are posted at 30 mln t against 27.0 mln t in the previous campaign.

Rapeseed also showed a spectacular rebound of prices both because of chartist reasons and because of tight fundamentals at the European level, Agritel analysts add.

Previously reported that Indonesia purchased Black Sea wheat at 310 USD/t C&F for August shipment.

Grains bulk yield in Ukraine in 2021 is forecasted 8.8% higher YoY by the National Scientific Center Institute of Agrarian Economics.

USDA in its May report put the forecast for wheat production in Ukraine in 2021/22 at 29 mln t, 14% higher YoY, and corn at 37.5 mln t, 24% above the 2020/21 estimate.

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