Wheat

Prices of wheat were unchanged in the benchmark market of Indore as poor demand offset gains from the fall in arrivals. Arrivals of wheat in the Indore market were at 700 tonne, down from 800 tonne on previous close.

European wheat futures hit a 10-day low as the easing of a heatwave in western Europe and a quick start to harvesting in France offset weather worries that had pushed prices to a near one-year high last week. December milling wheat, the most active position on Paris-based Euronext, was down 2.00 euros, or 1.1 percent, at 176.00 euros a tonne at the close, just off an earlier low of 175.50 euros. The European Union crop monitoring service lowered its 2017 yield forecast for EU soft wheat, citing hot, dry weather.

Chicago Board of Trade wheat prices fell about 2 percent, extending their slide to four sessions on profit-taking after a run-up to one-year highs last week. CBOT July wheat was down 8-1/2 cents at $4.51-1/4 per bushel. MGEX July reached $6.75 a bushel.

Futures of wheat, however, traded largely flat during the day and the July wheat contract on NCDEX settled at 1,615 rupees per 100 kg, unchanged from the previous settlement. Prices of wheat in spot markets were also unchanged due to steady demand and supply.

Last week Bulgaria old-crop grain market featured downward price trends. In view of sluggish sales towards the season end, purchase prices for all the staple grains are falling in the domestic market. In the new-crop market, forward wheat prices gain on average $2-3 a week due to global trends, reaching $181-184/MT FOB for 12% protein wheat, August-September delivery. At the same time, no revival is yet observed in sales of new-crop grain.

Japan Ministry of Agriculture bought a total of 135,747 tonnes of food-quality wheat from the United States, Canada and Australia in a regular tender. From U.S. Western White 24,561 tonnes, Hard Red Winter (semi hard) 9,690 tonnes, Dark Northern Spring 35,710 tonnes (protein minimum 14.0 percent), Canada Western Red Spring 31,106 tonnes (protein minimum 13.5 percent) and from Australia Standard White (West Australia) 34,680 tonnes wheat import.

U.S. wheat fell 0.5 percent to extend two-day losses to nearly 2.5 percent, as traders paused a run of recent gains to assess damage from recent unfavorable weather across the United States and Europe. The most active wheat futures on the Chicago Board of Trade fell 0.5 percent to $4.62-1/4 a bushel, having closed down 1.7 percent on previous close.

Wheat contract declined 0.4 percent to $4.62-1/2 a bushel, having closed down 1.7 percent on previous close. Chicago wheat futures slid for a second session as the market took a breather after climbing to a one-year high earlier this week, with traders pausing to assess damage from unfavorable weather across the United States and Europe.

Bangladesh state grains buyer issued an international tender on Wednesday to import 50,000 tonnes of wheat. The deadline for offers is July 11, and the wheat is to be shipped within 40 days of signing the deal.

Exports of flour and wheat byproducts have been made to Oman, Iraq, Afghanistan and Turkey while talks are underway with other countries, including Egypt, for such exports. About 500,000 tons of wheat from a total of more than 1 million tons offered on Iran Mercantile Exchange have been bought by producers and factory owners. The wheat offered on IME is sold at export prices, which are lower than those in the domestic market, under the condition that the purchased crop be processed into flour or byproducts and then exported.

Prices of wheat in the key wholesale market of Indore in Madhya Pradesh rose due to firm demand from flour-millers. The mill-quality wheat up 10-20 rupees from previous close. Arrivals to the market were around 8,000 bags, each with 100 kg of the grain, higher than the average arrivals of 2,000-3,000 bags in the last few days. In Delhi, the grain was unchanged.

Wheat prices rose by 5 rupees per 100 kg in Rajasthan Kota market due to improved buying from private companies as they anticipate a fall in arrivals leading to higher prices in coming days. About 8,000-10,000 bags (1bag=100kg) arrived in the Kota market, nearly half of the 20,000 bags during the peak season. Mill quality wheat was sold down 20-30 rupees from previous close.

CBOT wheat futures rose 0.2 percent to $4.73-1/4 a bushel, having closed up 1.2 percent when prices hit a high of $4.75-3/4 a bushel, as concerns over French and U.S. production due to unfavourable weather pushed prices to a near one-year high.

Iran exported a 35,000 tonne cargo of wheat to Oman. For the time being only one cargo of milling wheat has been traded to Oman. because Iranian wheat is not graded, and with the current low prices of wheat from other more attractive origins, it is very unlikely that Iran able to sell more significant volumes.

Chicago wheat futures rose more than 1 percent, with prices underpinned by a further decline in the condition of the U.S. spring crop following weeks of dry weather. USDA rated 41 percent of the U.S. spring wheat crop as good-to-excellent, down from 45 percent a week earlier. Winter wheat the good-to-excellent rating stood at 49 percent compared with 50 percent a week ago and below last year 61 percent.

European wheat futures rose to their highest in nearly a year as growing concerns about the impact on crops of a heatwave in France added to support from a weather rally on the U.S. market. December milling wheat, the most active contract on the Paris-based Euronext exchange, was up 2.75 euros or 1.5 percent at 180.00 euros ($200.95) a tonne. Front-month September also touched its highest since last July, adding as much as 4 euros to 177.50 euros.

Jordan state grains buyer again issued an international tender to purchase 100,000 tonnes of hard milling wheat which can be sourced from optional origins. The tender closes on June 20. A new tender had been anticipated by traders after Jordan made no purchase in its previous tender for 100,000 tonnes on June 13.

Wheat exports Down 7.75% from last week at 801,725 MT, but still 29.37% larger than last year.

Wheat prices were unchanged in Delhi markets amid thin trade. In Delhi, mill-quality wheat was sold at 1,740-1,750 rupees per 100 kg. Demand for the grain has declined as buyers are cautious and do not want to hold inventories ahead of the goods and services tax regime. The July contract on the NCDEX was trading at 1,628 rupees per 100 kg, up 0.5% from the previous close.

The government has no plans to raise import duty on wheat, sugar, or edible oils as of now. A fall in prices of the commodities had led to speculation of hike in import duties. In March, the government had imposed 10% duty on import of wheat to stem the fall in domestic prices.