Wheat retreats as traders looking for new leads on Russian exports

  • Wheat retreats as traders looking for new leads on Russian exports
    FarmIreland.t. E.
    Exchange wheat fell on Monday, abandoning the coolest achievements from the previous session, as traders waited for more obvious signs like whether exporter Russia will limit the supply for the season.
    https://www.independent.ie/business/farming/tillage/grain-prices/wheat-retreats-as-traders-seek-more-clues-on-russian-exports-37236255.html
    https://www.independent.ie/incoming/article37179352.ece/516ad/AUTOCROP/h342/2018-07-20T152015Z_1528470162_RC14F2FB4A00_RTRMADP_3_EUROPE-WHEAT-HARVEST.JPG

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Exchange wheat fell on Monday, abandoning the coolest achievements from the previous session, as traders waited for more obvious signs like whether exporter Russia will limit the supply for the season.

Forecasts for some rain in the arid Eastern Australia and slow exports European Union is also cooling the market after the rally on Friday.

By 1605 GMT, the benchmark December milling wheat on euronext Paris, fell to 3.00 euros, or 1.4%, to € 211.75 ($242.18) per ton.

“The drop is due to the lack of bullish news,” one futures dealer said.

On Friday, the contract climbed as much as 3 percent to 216.50 euros, approaching a 5-1/2 year high of 218.25 euros struck in early August, after a meeting between the Ministry of agriculture of Russia and traders have raised speculation about a possible export curbs.

Some traders reported that the Ministry of agriculture will consider the 2018/19 curb grain exports as soon as they reach 30 million tons, at the request of the cold regions, but the Ministry denied the discussion of any restrictions.

The news reinforced doubts about the ability of Russia to fulfill the Ministry’s forecast at 35 million tons of wheat exports in 2018/19, taking into account the expected drop in production and a very brisk shipments in the beginning of the season.

Traders are sensitive to any suggestion of export curbs in Russia after the country imposed a total ban in 2010/11 following the severe drought, sending world prices surging.

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Russian traders said on Monday they may increase their volumes in the first half of the season to avoid possible limitations in the end of the season.

Separately, news Agency “Interfax” quotes the Ministry of agriculture as saying that Russia plans to sell about 2 million tons of grain from government stocks in 2018/19, expanding the initial program 500,000 tons.

Speculation about Russian export policy added a lull in the physical market in France.

“After a meeting in Russia on Friday, people thought back in 2010. So sellers are holding a little and waiting to see what happens,” French one cash broker said.

Many market participants return from summer holidays, the activity is expected to gradually this week.

Weekly data from the European Commission showed that exports of soft wheat from the EU to 2018/19 reached 1.8 million tons in August. 19, down 40% compared to a year earlier.

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