The experts of the IGC increased the forecast of production and consumption of wheat in 2020/21 MG
In its October report, the experts of the IGC increased the forecast of world wheat production to 764 million tonnes, 0.7 million tonnes higher than the figure recorded last year, due to the higher crop forecast in Russia to 82.5 million tons Due to reduced valuation of the initial stocks and the increase in the forecast of global trade and consumption of wheat to 751 million tons, the forecast of ending stocks was reduced to 291 million tonnes, which is 4.7% above last year's level and will be the record index.
Yesterday the price of soft wheat in Chicago continued to fall, and December futures has updated a 2-week low on rainfall data in Russia and the United States, as well as the fall of neighbouring markets of soybeans and corn under the pressure of declining oil prices.
Quotes do not support any increase in export sales of US wheat for the week doubled to 743 thousand tons and the actual export by 230% to 442,5 thousand Since the beginning of the season exported of 10.63 million tons of wheat, which is only 2.6% higher than the corresponding figure 2019
December futures in the U.S. fell:
the
0.46 $/t to 199,15 $/t for solid winter HRW wheat in Kansas city.
- 1,84 $/t to 221,84 $/t for SRW soft winter-wheat in Chicago
was Up 0.09 $/t to 202,91 $/t hard spring HRS wheat in Minneapolis.
Exchange in Paris yesterday despite the drop in Chicago ended speculative growth, even though the whole day traded in negative territory under pressure from the bearish fundamental and market factors. However, at the end of trading, investors began to play on the rise amid oversold market.
the
- December futures for milling wheat on MATIF rose by €1/t to 205 €/t or 239,59 $/t
wheat Harvest in Argentina and Australia continues to put pressure on physical markets. In Argentina, prices for shipments in December-January wheat with protein 11.5% of dropped to 245-250 $/t FOB, in Australia – to $270/MT FOB.
French wheat with protein 11.5% of the offer to supply in November for 245 $/MT FOB, while prices of German wheat protein 12.5% down to 240-243 $/t FOB.
In Ukraine, the demand price for wheat under the pressure of diminished export demand fell by 5-10 $/MT up to 245-250 $/t FOB. Purchase prices at the port dropped to 230-235 $/ton, UAH but prices remain at the level of 8100-8250 UAH/t on the background of strengthening of the dollar and the need for traders to purchase the right party. Most buyers completing the program, procurement of wheat, as now buy significant quantities of wheat in Ukraine is impossible, even at high prices. This will reduce competition, export demand and wheat prices.
