Wheat commentary: Rains push Board to two-week lows

Wheat futures continued to fall for a second day Friday as rains came to drought-stricken areas in the Southern Plains and pushed the Board down to the lowest levels seen in two weeks.

While the worst hit HRW growing areas remain under severe drought, overnight rainfall in Kansas, Oklahoma and Colorado was enough to push the HRW front month contract 2.3% lower and the SRW front month 1.9% lower.

On the Black Sea, spot prices were up $2.50 on the back of a flurry of Thursday trades heard for March at $209/mt and $209.50/mt while a panamax was also said to have traded at $211//mt FOB for the second half of April.

The spot price was adjusted downwards to reflect the ruble’s slide against the dollar Friday, with the Russian currency losing over 1% against the dollar by 1600 in London.

In Ukraine, CPT values for feed wheat continue to track higher on the back of tight supply, with the market quoting levels at $183/mt – equivalent to $200/mt FOB.

In other news, Russia is likely to continue to push its grain exports by renewing a controversial freight subsidy programme into the 2018/19 marketing year, with Putin pushing the government to get an updated policy in place by mid-July.

Meanwhile, FranceAgrimer cut its rating for soft wheat deemed in good or excellent condition for a third consecutive week due to persistent cold winter wheat, as its condition nears a five-year low, according to a report published Friday.