CBOT wheat prices strengthened due to precipitation deficit in the main producing regions.

During May 31- June 07, CBOT wheat prices strengthened slightly (+0.1%). The US wheat export spot prices (SRW) for July delivery remained at the previous week’s level, while French wheat supply prices kept growing (+USD 3/MT). Futures strengthened on information about precipitation deficit in the Black Sea countries, Argentina and Australia. Excessive rains were seen in the EU countries, with the exception of Poland, Spain and Portugal. Against the backdrop of soil drought in the US winter wheat producing regions, its conditions kept worsening. As of June 03, the share of plants in good and excellent conditions was 37%, compared to 38% a week before (49% on the same date last year). At the same time, the start of winter wheat harvesting limited the price growth. The weather factor supported French wheat prices. Wheat exports from the EU countries remained low.