Fire & Ice weather conditions in the South Hemisphere and lower Global wheat estimates put Blacksea on a hiking mood

The sharp drop in temperatures in August in the Brazilian South, followed by frosts and heavy rains, reduce the productivity of the region's wheat crops. According to Deral, there are still uncertainties regarding the total losses, but lower productivity is estimated in the three southern states. In Argentina, on the other hand, it is the drought that concerns growers and compromises the productivity of crops, helping to support CBOT wheat futures. In the Brazilian market, producers are attentive to the offers of the new harvest and to the accounting of possible damages from the cold front. Thus, wheat negotiations on the brazilian domestic market continues to be spot. Data from Seab / Deral indicate that the advanced commercialization of the cereal is 15.7% of the predicted volume. Some millers are holding back while others might still be operating with reasonable stocks.

On the international markets, wheat futures had been hiking higher at Chicago , supported by soaring prices in the Black Sea region and concerns about tightening supplies in exporting countries, as USDA estimates advise potential crop reduction or faltering supply.

CBOT wheat was up 14 cents at $5.66-1/4 a bushel, after reaching its highest price since April 1 of $5.68-1/2.

Wheat prices in the Black Sea and Azov region rose sharply last Thursday, after several tenders over the past few days and short covering, an agency reported. In Russia wheat for September loading jumped $5/mt in one day to $210/mt FOB. In Ukraine, 11.5% prot. for September loading was up $3-4/mt from Wednesday's levels to $211/mt FOB. Shallow water in Azov followed the trend.

In general bids and offers are having from $3 to $5/mt FOB price gap.