wheat futures brokers

wheat futures brokers

August 2nd, 2018

Wheat prices leapt to multiyear highs on Thursday on fears of curtailed exports from the Black Sea after heat and drought damaged crops across Europe.

Milling wheat in Paris settled up 2.7 per cent at €212.75 per tonne, the highest since 2014. In Chicago, soft winter wheat closed 0.4 per cent higher at $5.60½ a bushel after spiking near $6 for the first time since 2015.

Headlines from Ukraine, a leading grain producer, ignited a market already fretful over short supplies this year.

Ukraine planned to sign a memorandum with traders to set limits for grain exports, Bloomberg reported, citing a Agriculture Ministry statement posted on Facebook. The ministry’s press service later said that it was not holding talks about “strict and direct limits for milling wheat exports,” Reuters reported.

The reports were enough to spark the rally in wheat futures. Traders have vivid memories of a cereals export ban Russia declared during a devastating heatwave in August 2010, a move that limited global supplies and pushed prices higher.

“The Black Sea has risen to be the largest single exporter of wheat to the world,” said Ken Stein, a fund manager with Hehmeyer Trading + Investments in Chicago. “It’s a panic.”

The falling supplies are a reversal after years of slack in the grain market. After five years of increases, world wheat production is forecast to contract 5 per cent to 721m tonnes in the 2018-19 crop year, the International Grains Council has forecast.

It said Ukraine’s winter wheat yields had been hit by a long, dry spell before harvest. Scorching temperatures have also hit output forecasts in leading exporters such as Russia, Australia and EU countries.

- Financial Times.