Yesterday, the price of the Mait wheat future rose significantly. Support came from a weak euro exchange rate against the US dollar and recent tenders to buy wheat from various countries.
Dry weather in large parts of Europe and the Black Sea region supports the prices of wheat, because one is already worried about the yields of the next harvest. The May 20 futures contract closed yesterday with an increase of € 4.25 / to or 2.2% to € 195.25 / to.
On Monday it was reported that Jordan had bought 120,000 tons of wheat and that Turkey had launched a tender for the purchase of 250,000 tons of wheat. Saudi Arabia called on foreign investors to deliver 355,000 tons of wheat to the kingdom. In addition, Egypt and Algeria are expected to launch tenders again in the coming days after the last purchase attempts failed there.
A weekly EU report said that the EU and the UK had already exported 24.78 million tons of wheat this season. An increase of 66% over the same period last year. France exported 1.63 million tons of wheat in March, the most in March in 10 years.
After light rain at the beginning of the week, France is expected to stay dry for the rest of the week. The same applies to the rest of Europe and southern Russia. Russia is also the only export nation in the northern hemisphere that has increased wheat acreage for the 2020 harvest.
German bread wheat with 12% protein for delivery in April from Hamburg is offered at € 4.5 / t over the Matif May date. The bid price is +3.5 € / to above the EBMK0. Many ships with wheat leave German ports (Turkey, Iran, Nigeria, Guinea and Morocco), and as long as wheat prices in Russia remain firm, our international demand will continue.
Source
Hansa Terminhandel GmbH
