Andrey Sizov
07.08.2024
On Tuesday, wheat prices rose. The December SRW wheat contract closed at $5.66/bushel ($208/mt; +0.6% compared to Monday). HRW wheat in Kansas rose to $5.78/bushel ($212/mt; +0.3%). The September Euronext wheat contract closed at €224.75/mt ($246/mt; +0.7%). The September U.S. corn contract fell to $4.05/bushel ($160/mt; -0.4%).
Andrey Sizov, SovEcon: "The wheat market rose following the announcement of an unusually large tender by Egypt's state company GASC and a tender for delivery to Algeria. Additional support came from a low French wheat harvest forecast by consulting firm Argus. Wheat in Chicago posted gains for the fifth consecutive session, closing above its 20-day moving average for the first time in two months. This could potentially spur short-covering by hedge funds."
Egypt’s GASC will hold a tender on August 12 for the supply of 3.8 million metric tons of wheat for delivery from October to April. The payment delay for the tender is 270 days.
Algeria’s OAIC will hold a tender on August 8 for a nominal volume of 50 tmt of wheat. OAIC usually purchases wheat in volumes higher than the nominal amount.
Consulting firm Argus estimated French wheat production at 25.2 mmt, 27% lower than last year. Argus analysts expect this to be the lowest production level in the past 41 years.
As of July 1, 2024, Russian wheat stocks reached 20.3 mmt, exceeding last year’s numbers by 21%, SovEcon said. The stocks hit a new record-high amid an early start of a harvesting campaign.
