US wheat prices went down on rumors of Chinese buyers canceling a number of wheat contracts.
According to experts from Granitrade.com March futures fell yesterday:
Product |
Price |
| Soft winter SRW wheat in Chicago – by 3.4% | $219.1/t |
| Hard winter HRW wheat in Kansas City – by 2.1% | $226.1/t |
| HRS durum spring wheat in Minneapolis -by 1.4% | $258.1/t |
| Wheat on the Paris Euronext – by 1% | €218.5/t or $243.9/t |
The market did not react to forecasts of a sharp cooling in the main wheat-growing regions, because it will be short-lived.
Cost of freight and insurance risks decreased
The stable operation of the Black Sea corridor reduces the cost of freight and insurance risks and increases the export demand for Ukrainian wheat.
At the beginning of the week, 39 vessels stood for loaded in the ports of Odesa, Chornomorsk and Pivdenny, and another 84 will enter the ports in the nearest future.
This season (as of January 7), Ukraine exported 7.804 million tons of wheat (8.604 million tons for this period last year). So the export forecasts can increase from 12.5 to 14-15 million tons.
Purchase prices for feed wheat delivered to Black Sea ports increased to 158-160 USD/t, and for milling wheat to 180-185 USD/T. However, prices have the potential to rise.
Now the wheat market is waiting for the new USDA report. So significant price fluctuations should not be expected this week.