The nearest wheat futures last week rose by 3.22 USD to 168,19 USD. Despite the overall positive weekly result, since the mid of the week prices began to decline and in fact, the market is developing negatively. It should be noted that quotes have grown in leaps and bounds. From 9 to 12 February, prices rose to 170,49 USD, however, by 15 February they have fallen to 169,66 USD, and this week (as 21.02.2018) are already 164,34 USD. If at the beginning of the week the market was used as a basis for growth the theme of drought in the American plains, with the media of the "weather" factor turned the market 180 degrees, and rates began to decline. The decrease in quotations was affected by the rains that fell in the U.S. (Texas and Oklahoma) that gave hope to the market to improve forecasts for the winter wheat crop in the country.
Sales of wheat for export amounted to 311,123 thousand tons, which is 20.9% below the level a week earlier, but still within expectations. It should be noted that while export commitments for wheat the US was behind last year and the reason for this (and for the soybean market), is the increase of competition on the world market. The decline in sales weakened further quotes have influenced their decline.
The market for wheat. At the end of the week to 16.02.18 the nearest futures for wheat grew by 3.0 197,75 USD to USD. To 21.02.18 futures rose to USD 198,0. European wheat was grown this week, slowly but surely. Most of the pressures on wheat continued to influence the market. However, supported by quotations weakened during the past week the Euro, which has enabled the prices to grow, as well as the General positive dynamics of futures on the stock exchange of Chicago. The export of European wheat is still low. The reason is the intensification of Russian exporters in their traditional markets (Turkey and Egypt), as well as the conquest of new (high inventories need to be implemented). Grain from Europe is suffering from increased competition and a strong Euro have all season. Lagging behind the pace of exports last year of about 19% and the situation is only getting worse.
The corn market in the reporting week increased by 2.16 USD to 144,67 USD. 21 Feb corn fell to a level of 143,99 USD. Corn quotes again supported by high export performance. So, when market expectations of 1.0-1.5 million tons, export sales amounted to 2.0 million t. the Main buyers of corn are Japan, Mexico, Saudi Arabia.
Translated by service "Yandex.Translation"