CBOT wheat and corn prices gained 1% last week

02.05.2018

WHEAT. Over the period under review (April 19-26), CBOT wheat futures gained 0.84%, reports UkrAgroConsult.

CBOT prices strengthened on the information about the delay of spring wheat sowing in the USA, as of April 22. The pace was significantly behind the multi-year average (3% compared to 25%). Currently winter wheat lags behind in development - 13% of plantings have entered the earing stage, compared to 19%, which is the five-year average. The share of winter wheat in good and excellent conditions remained at the previous week’s level - 32%, compared to 54% for the same date last year.

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Meanwhile, the quickening pace of grain planting somewhat eased tension in the Ukrainian market. Despite strong demand and vivid exports of Ukrainian wheat, price growth was curbed by sinking world prices. Export prices for Ukrainian milling and feed wheat closed the week unchanged.

Domestic wheat prices in Ukraine also remained at the previous week’s level.

Purchases of new-crop grain are picking up pace.

CORN. During April 19-26, CBOT corn prices rose by 1.05%.

Corn prices strengthened on the information about the delay of corn sowing in the USA, as well as under the influence of trends in the adjacent wheat market. As of April 22, sowing had been conducted on 5% of the intended area, compared to 14%, which is the five-year average.

In addition, dry weather and high temperature in southern and central parts of Brazil raised fears about the potential of the second-crop corn in the country.

CBOT price increase was limited by low US corn export contracting over the week (697 KMT, compared to 1594 KMT the previous week).

More information on price behavior on grain market in the countries of Black Sea region is available to subscribers for weekly market report "Black Sea Grain" and "Online market review" by UkrAgroConsult.

 

UkrAgroConsult

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