VELES AGRO

tillage equipment and spare parts

VELES AGRO

tillage equipment and spare parts

The price of wheat continues to fall, corn is going up rapidly

10 july 2012

As is known in the last week in the grain market situation has not changed for the better. Grain prices, invariably, continue to decline worldwide.

By the way, a high level of instability today is marked not only grain but also the entire commodities market in general. Trends are changing daily, which, by itself, is of concern to investors. Latest carefully monitor any information, whether it’s weather reports, forecasts and harvest even ignore the rumors in the financial market.

That situation was the fact that many funds withdrew their assets from commodity markets and redirect them to the financial sector, in particular the purchase of the US dollar.

Recently, the state of the grain market was influenced by the set of «bear» factors, the main of which are presented below:

— consistently strong dollar had a negative impact on the competitiveness of US grain, which was the sharp decline in prices of proposals from the States. According to the latest sale of US corn exports amounted to only 482.1 thousand. Tonnes when expected 1‒1.3 mln. Tons. Since wheat is somewhat different — 827 thous. Tons (754, 6, of which the harvest of the current year) with projections 350‒550 thous. Tons. In Europe, with exports not too sweet — the weekly sale of soft wheat on June 8 was 176 thousand. Tonnes, on June 15, has 120 thous. Tons, and 22 th of altogether 85 th. Tons, so that the decline sales did not even see the naked eye;

— Given the abnormal weather conditions caused by severe drought in the US, the price of a bushel of the crop has already soared to 41% from 14 June. As a result of the simultaneous action of heat and drought ceased pollination, resulting in not appear on the cob. And despite the fact that many do not use corn for food, it should be remembered that 75% of the product being processed, contain corn in one form or another. Disastrous corn harvest jeopardizes a significant number of American farmers, who may be on the verge of bankruptcy.

— major role in reducing the price of grain has played weather improves in Ukraine, Russia, China and Australia. A large number of the recent sediments, which are also predicted in the near future, provided favorable harvest prospects;