Fundamental factors lowered the price of wheat

a Large number of Friday's news in the coming weeks will determine the world price of wheat. Last week, prices were supported by the rapid growth of the corn market due to a reduction in acreage and production forecast in the United States and a corresponding increase in demand for feed wheat.

However, the increase experts USDA estimation of sowing areas of corn to 91.8 million tonnes, which is almost equivalent to the record high forecast Mar and 3% higher than analysts ' expectations collapsed the price of corn by 6%, then the price of wheat fell by 4%.

Support rates could not even forecast reduction in sowing areas of wheat in the United States to the lowest since 1919. level 45,609 million acres, which is 5% lower than in last year and 150 thousand acres from the March forecast. Compared with 2018 the year of sowing area of winter wheat decreased by 2% to 31.8 million acres (+270 thousand acres to the March estimate), spring – 6% to 12.4 million acres (-400 thousand acres from the March forecast). Area wheat harvest in 2019 will decrease compared with 2018 3% to 38,405 million acres. Stocks of wheat in the U.S. on June 1 totaled 29,18 million tons of acres that at 740 THD. MT inferior to the corresponding level of last year.

the July wheat futures in the U.S. fell:

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by 6.06 $/t to 165,89 $/t for solid winter HRW wheat in Kansas city.

• by 7.17 $/t to 194.00 $/t for SRW soft winter-wheat in Chicago

Rose 1.01 $/t to 203,65 $/t hard spring HRS wheat in Minneapolis.

Experts IGC increased the forecast of world wheat production in 2019/20 MG in comparison with the previous report 765,8 to 768,5 million tonnes against 733,1 million tonnes in 2018/19 Mr. Production will grow in Canada, the EU, India and Russia. The heat in Western Europe has not damaged the wheat crop and is already beginning to subside.

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• September futures for milling wheat on MATIF on Friday continued to fall and decreased by 2 €/t to 180,25 €/t or 204,96 $/t

the European Commission has lowered the forecast of wheat production in the EU in 2019/20 MG by 1.5 million tons to 142.3 million tons due to drought in Spain and France, but it did not affect prices.

the price of Russian wheat fall following the decline of stock prices amid growing suggestions the next harvest.

As of June 28 in Russia with 1.2 million hectares and produced 5.3 million tons of wheat with a yield of 4.38 t/ha, whereas last year at this date was threshed 752,2 thousand hectares, and the yield was 4.03 t/ha.

In Ukraine on June 27 330 thousand hectares (5% of area) threshed 1 million tons of wheat with a yield of 3.19 t/ha vs 3,06 t/ha in 2018.