Wheat prices rise on the back of weather forecasts
2017-05-19 21:09:54 GMT (Economies.com)
Wheat prices rise on the back of weather forecasts

Wheat futures rose over two percent in American trade as the dollar index fell to its lowest since November 8, amid a lack of data from the U.S., the world's second largest wheat exporter. 


As of 08:29 GMT, wheat futures due on July 15 tumbled 2.23% to $4.3525 a bushel from the opening of $4.2575, while the dollar index fell 0.78% to 97.11 from the opening of 97.79, marking a six-month low. 


The U.S. National Weather Service warned from floods coming from heavy rains throughout eastern Kansas and Oklahoma towards western Missouri and Arkansas, which might lead to crop delays in these parts. 


The Agency also said "heavy rain and flood risks are expected to continue until the weekend from the gulf's coast to the Great Lakes", while expecting thunder storms and more rains on parts of Indiana. 


On the same note, Egypt bought two shipments from American food for the first time in two years, or about 115 thousand metric tonnes, equaling 39% of the total bids by the Egyptian government, with the world's largest wheat importer asking for high-protein grains, favoring the American over French wheat. 


Egypt also bought from its biggest supplies, Russia and Ukraine, while resuming shipments from the U.S. after stopping them since 2015, when global production reached record highs and Russian wheat prices fell sharply, which supplies two thirds of Egyptian demand in the last two years.  


As the dollar index hits six-month lows and the Russian Ruble rose compared to its last two year lows, U.S. wheat prices fell by a fifth from its 2015 levels, putting it into competition once more.


The Egyptian government specified its demand for grain with a 12.5% protein rate, up by half a percent, putting French wheat out of competition as it's only 12%. 


Finally, Romanian company Cerealcom with the best prices will supply 60 thousand tonnes with a price tag of $207.18 per tonne, while Amiroba Ag will supply 60 thousand tonnes with a price of $207.25. Louis Dervos will supply 55 thousand tonnes with a cost of $207.90 from American winter wheat, with another 60 thousand tonnes from Ukrainian wheat at $208.74 tonnes, and 60 thousand from Russian wheat at $208.49 from Midgolf. 

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