Speculative jumps in the price of wheat and other agricultural commodities linked to news from the Black Sea region continue on world markets. Yesterday it was announced that three ships were heading for Ukrainian Danube ports under cover of an American anti-submarine aircraft, while a further 16 ships were at the entrance to the Ukrainian Danube estuary. On the basis of this information, wheat, soya and maize prices fell by 3.2-6%, although they began to rise after the close on the basis of data on the state of crops in the USA and the activation of exports, reports Graintrade
Yesterday, September futures fell:
- by 6.1% to $244.6/t – for soft winter SRW wheat in Chicago,
- by 5.7% to $298.6/t – for hard winter HRW wheat in Kansas City,
- by 4.9% to $314.4/t – for hard spring HRS-wheat in Minneapolis,
- by 0.3% to $240.25/t – for Black Sea wheat in Chicago,
- by 3.2% to €240/t or $263.7/t – for wheat on the Paris Euronext.
According to the weekly NASS USDA report, US winter wheat was 80% harvested as of 30 July, in line with the 5-year average of 83%, and spring wheat harvesting has already begun. Due to last week’s dry and hot weather, the number of spring wheat acres in good or excellent condition for the week fell 7% to 42% (70% last year).
By the end of the week, rain and cooler temperatures are expected in spring wheat growing areas, but this will not improve crop condition and yield potential.
In the period 21-27 July, US wheat exports rose 60% week-on-week to 581.3 thousand tonnes, and for the season as a whole totalled 2.74 million tonnes, just 4.8% below last year’s pace.
Wheat prices rose last week amid the shelling of Ukrainian ports, but at the end of the week traders began to take profits and prices fell back to the previous week’s level, adding a total of 5-10% for the month. Traders are now awaiting harvest data from the northern hemisphere.
Source: Graintrade