Extreme cold in USA raise the price of wheat

01.02.2019

Powerful cyclone with strong frosts and winds covered the territory of the United States from North and South Dakota to Maine. In Minnesota, the temperature broke the record 1800 and dropped below 50C. In Chicago the night temperature fell to -27C, which was at least since 1985.

On Wednesday at the wheat site in the USA was influenced by the failure of the tender in Egypt. However, prices were supported by cold weather which can cause damage to winter crops and the decline of the dollar caused governmental crisis and the slowdown of the American economy.

March wheat futures rose:

0.73 $/t to 184,54 $/t for solid winter HRW wheat in Kansas city

1.19 $/ton to 209,99 $/t on a firm spring HRS wheat in Minneapolis.

1.29 $/t to 189,87 $/t for SRW soft winter-wheat in Chicago

On the Euronext investment funds increased long positions in wheat futures 10155 lots last week 18221 lots that helped net long positions reached to rebound from last week's eight-month low.

March futures for milling wheat on Euronext remained at 205,75 €/t or 236,51 $/t

The Demand from buyers remains low, so prospects for the export of European wheat is not yet clear. Argentina is increasingly supplying wheat to the market of Algeria, therefore, only the reduction in prices of French wheat to improve its competitiveness.

Turkey has acquired 292,5 thousand MT of wheat with protein 13.5% price 260 $/MT CFR, and Jordan next week will hold a new tender to purchase wheat.


GrainTrade

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