China sells 1,303 tonnes of imported 2013 wheat at auction of state reserves at an average price of 2,351 yuan ($341.79) per tonne. Sale represents 0.07 percent of total wheat available at the auction. China also sells 2,070 tonnes of 2012 wheat at auction of state reserves at an average price of 2,360 yuan per tonne, according to the trade center. The sales volume represents 1.93 percent of total wheat available at the auction.
Russian wheat exports up 90% at 4.6 mil mt in marketing year to August 8
Russian wheat exports between the start of the marketing year on July 1 and August 8 were 4.63 million mt, up 90% on the year. The faster pace than last year reflects an earlier-than-usual harvest as a result of hot, dry weather, which prompted farmers to begin much earlier than expected to minimize heat and drought damage to crops. Despite this, crop production forecasts are much lower at around 70 million mt for 2018-19 than 2017-18s 85 million mt harvest. Supply constraints have subsequently pushed prices to record highs. Deep sea port 12.5% protein wheat was assessed by S&P Global Platts at a 41-month high of $231.50/mt. The forecast for Russian production was revised up 1 million mt to 68 million mt. Exports too were revised up 1 million mt to 35 million mt but still well short of the 42 million mt exported in 2017-18.
Spot wheat prices up on improved demand
Spot prices of wheat edged slightly higher in key markets of Delhi and Kota due to improvement in demand from bulk buyers. In Delhi, spot prices of mill-quality wheat were at 1,970-1,980 rupees per 100 kg. Price of mill-quality wheat in the Kota, a key market, was at 1,840-1,880 rupees per 100 kg, up from 1,850-1,870 rupees on previous close. Prices edged higher in Kota also because of a fall in daily arrivals. Daily supply of wheat is down because the government procured the food grain aggressively this year. The government procured 35.5 mln tn of wheat in 2018-19 (Apr-Mar), against 30.8 mln tn in the previous year. On NCDEX, the front-month August contract of wheat moved in a narrow range and ended at 1,972 rupees per 100 kg, down 0.3% from the previous close.