As expected, the recovery in wheat prices on Monday was not sustainable. Yesterday the contracts fell again, wheat in the most traded May contract fell to 190.25 euros/t, recording a loss of 3.00 euros per ton. The same thing went south in Chicago. Leading May wheat fell 13.00 cents to 551.00 US cents/bu (186.48 euros/t). Last week until February 28th. 215,261 tonnes of European wheat were exported to third countries. Looking at the financial year to date, the export count has reached 20.97 million tonnes. The shortfall compared to the previous year's result has thus further reduced and now amounts to 407,274 tonnes of common wheat. However, current figures from the Republic of Ireland and Bulgaria are still missing from the statistics published yesterday. Algeria recently booked 600,000 tons of wheat for delivery in June. Although Algeria does not publish any tender results, it is speculated that prices will be between 227 and 228 US dollars/t including freight. Deliveries from Ukraine and Russia are likely to have received priority bids. Export competition from the Black Sea is also pulling prices south in Chicago. Because of falling prices in Russia and Ukraine, US retailers fear their competitiveness. Overall, weather conditions for winter wheat are rated as good. However, in Kansas and Texas, the USDA lowered the condition rating compared to the previous week. Pre-market contracts on the CBoT are once again trading at losses this morning.
Source
VR AGRICULTURE
