Despite a neutral USDA report, wheat prices have grown following the corn market

2020-11-11 12:01:20
Machine translation
Despite a neutral USDA report, wheat prices have grown following the corn market

the November USDA world balance of wheat remained fairly balanced, with a record world production and ending stocks.

 

the Increase in initial reserves in comparison with the assessment in October by 1.36 million tons to 300,76 million tonnes to compensate for the reduction of world production 0.8 million tons to a record 772,38 million tonnes (764,9 million tonnes in 2019/20 MG), which increases the volume of global wheat supply.

 

Reduction in forecast wheat production in Argentina by 1 million tonnes to 18 million tonnes will be partially offset by its growth in Russia 0.5 million tons to 83.5 million tons

 

the Forecast of world consumption of wheat increased by 1.7 million tonnes to 752,7 million tons due to increased feed production in EU and China.

 

Evaluation of world exports increased by 0.9 million tonnes to 190,8 million tonnes, in particular for Russia by 0.5 million tons to 39.5 million tons, EU countries – 0.5 million tonnes to 26 million tonnes, while for Argentina it was reduced 0.5 million tons to 12.5 million tonnes.

 

the Forecast of ending stocks of wheat in 2020/21 MG reduced by 1 million tonnes to 320,45 million tons, exceeding the estimates of experts and remains at a record level.

 

For Australia, the forecast of production left at 28.5 million tons, although local analysts estimate it at 1-2 million tonnes higher, so after the collection is complete in December, the global balance can be adjusted. The export forecast has also left unchanged.

 

After the publication of the report of the wheat exchange in the US closed higher after rapid growth, in particular, the December wheat futures in Chicago showed the greatest growth over the last 4 weeks.

 

a Surprise for the market was a reduction to U.S. ending stocks of wheat by 0.8%, and corn stocks at 11.8 million tons due to reduced production and increased export forecast. December futures for corn in Chicago has updated the 15-month high.

 

December futures U.S.:

the

3.31 $/t to 206,31 $/t for solid winter HRW wheat in Kansas city

2.48 $/t to 206,31 $/t on a firm spring HRS wheat in Minneapolis.

  • by 4.04 $/t to 223,58 $/t for SRW soft winter-wheat in Chicago

 

French wheat, as the U.S. has risen following the corn market, the balance for which became bearish. Prices also supports an active demand from importers. For example, Algeria announced a new tender for the purchase of wheat.

 

the

  • December futures for milling wheat on MATIF rose by 2.75 €/t to 3-week high of 212 €/t or 250,71 $/t

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