Russian wheat is getting cheaper. Now its value has reached the minimum mark of the season. Last week, it lost $ 2, having fallen in price to $ 191 per ton.
The difficulties in the futures market and huge competition with other manufacturers caused the price fall.
Wheat futures from France for September have dropped 1.5% to $ 184 per ton. Now there is a second harvest season in France. It is expected that it will be the second largest in history and will beat the last year results by 14%. This means at least 39 million tons will be collected.
The main reason why the demand for wheat from the Russian Federation is slightly falling is the lack of contractual obligations for traders. On average, the prices have fallen 11-12 thousand rubles per ton.
Experts believe that soon the market will stabilize and return to previous levels. In the United States, wheat has already overcome the negative trend. There is the same picture in France. Here talk the traders about lower sales on the physical market.
In the next six months, the price of wheat will have great growth potential. This applies not only to the world, but also to the Russian wheat market. Analysts believe that current quotes in the future can rise about 20%.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group