Getreide Cockpit, 14.10.2016

Demand drives wheat and corn prices to top - new platform? After the recent USDA report confirming a sustained above-average supply situation in the global grain market sent the stock quotes in the basement , the win now assessments again prevailedthat is more likely to expect prices in the foreseeable near future. Background for the reversal of opinion is clearly increasing import demand from different countries. Egypt has considerable pent-up demand, which is now re-scheduled in rapid succession by shopping at least partly after the squabbles about the highest trim on ergot. Drought in Algeria and Morocco leads to a doubling of imports compared to the previous years. As the traditional supplier largely turns out France, wheat is mainly procured from the United States. With a large order of more than 500,000 t, Saudi Arabia reports to Word. Other countries from the Middle East are also with tender tenders on the market. Indien several million tonnes of cereal import after reduction of import taxes. The first deals with Australia have been made already. More will follow. In the United States , it is convinced that U.S. wheat prices despite a strong U.S. dollar are still the cheaper deals. Low freight rates contribute to mitigate costs more longer distances. Even the courses from the black sea areas can keep with limited. EU prices are due to the weak harvest at a comparatively high level in international comparison. In the wake of the USDA report new information come to harvest results and consumption trends. Argentina withdraw something his previously treasured wheat acreage. Australia , however, expected after regional damage by flooding and frost damage now yet again a crop above the 30 million tonnes compared to average 25 million tons in recent years. Likely you will need to bring only a limited additional export on the way and stuck a considerable part in the construction of closing stock. Is the youngest Russian estimate of grain harvest in the country to 119 million tonnes. The USDA went out of 112 million tonnes. However, the Russian export prices as a result of the ruble has become stronger due to higher crude oil prices rise.  To export the announcement of China's, to the relief of his cereal surpluses after more than 10 years, for the first time corn has found little resonance, but could be for the transport-related import countries of Southeast Asia. The current price rise is expected to be of limited duration and essentially represents a correction of the so far somewhat too low unusual quotations.   May be the level offers a platform to the reorientation.