Increasing competition from Ukraine and to some extent also from Russia will cause wheat prices on Euronext/Matif to fall on Friday. The front month September loses 5 euros, the most traded December contract loses 1.50 euros per ton. Russia has sold 105,000 tons of wheat to Algeria, according to agency reports, while grain shipments from Ukraine are up 79 percent week-on-week. The good harvest in Russia is also putting further pressure on the country's export prices. According to information from the consulting firm Sovecon, these are currently 315 US dollars per tonne, which is another 20 US dollars below last week's level. On the CBoT, prices were able to recover from Thursday's losses on Friday. A slightly weaker US dollar supported export expectations, and many traders also took the opportunity to close out short coverings due to today's holiday. Argentina's wheat stocks are threatened by drought. According to the grain exchange there, more than a quarter of the stocks are in poor condition. The harvest in Argentina starts in November. The US stock exchanges will remain closed today for a holiday.
Source
VR AgrarBeratung AG
