The deterioration of spring wheat crops in the United States increases pressure on quotes

2021-06-08 12:34:27
Machine translation
The deterioration of spring wheat crops in the United States increases pressure on quotes

Yesterday, wheat quotes on world stock exchanges grew amid forecasts of heat in the spring wheat growing zone in the United States, as well as increased demand from importers. The crop report, released after the end of trading, showed a sharp deterioration in the condition of spring wheat crops in the United States, which supported prices.

 

According to SovEcon estimates, the area of spring wheat sowing in Russia will reach 13.7 million hectares, which will almost correspond to the record level of 2016, due to the re-sowing of winter crops in the central regions of the country. As of June 7, it sowed 12.9 million hectares, which is 1.7% higher than planned and 0.6 million hectares – last year's figure.

 

ICAR experts increased the forecast of wheat production in Russia in 2021 by 0.5 million tons to 80 million tons compared to last year's 85.9 million tons.

 

Wheat exports from Russia tripled to 300 thousand tons in a week, and in general in 2020/21 MG amounted to 36.8 million tons, which, although 8% higher than in the previous season, is significantly lower than the USDA forecast of 39 million tons.

 

  • July futures for Black Sea wheat rose yesterday by 1 1.75/ton to.264/ton.

 

Australia's ABARES bureau raised its forecast for wheat production in my 2021/22 by 11.2% from 25 to 27.8 million tons compared to March estimates, thanks to rain, which improved yield prospects.

 

On forecasts of an increase in the harvest in Australia and Russia, as well as worse export indicators than last year, wheat prices in the United States slightly decreased.

 

Wheat exports from the United States for the week amounted to 418.5 thousand tons, and in general in the season – 25.529 million tons out of the projected USDA 26.26 million tons.

 

According to the report on crops in the United States, during the week the number of winter wheat crops in good or excellent condition increased by 2% to 50% (51% last year), and spring wheat – decreased by 5% to 38%, while last year it was 82%.

 

July US futures fell:

  • by 2 2.75 / ton to Чикаго 249.90/ton for soft winter SRW wheat in Chicago,
  • by 3 3.12 / ton to H 231.50/ton for hard winter HRW wheat in Kansas City,
  • by 1 10.20/ton to.288.40 / ton for hard spring HRS wheat in Minneapolis.

 

Wheat exports from the EU for the week increased by another 200 thousand tons, and in general in the season amounted to 24.7 million tons, which is 26% lower than last year's figure and significantly less than the USDA forecast of 30 million tons.

 

  • September wheat flour futures for MATIF rose by €1.75/ton to €216.5/ton or € 264.4 / ton.

 

Today, the Algerian agency OAIS, which buys mainly French wheat, will hold a tender for the purchase of at least 50 thousand tons of flour wheat of any origin with delivery in August, which will support the prices of European wheat.

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