Despite the slowdown in the production of wheat prices in Russia decline
the Decline in world market prices and an increase in supply of grain has lowered prices for Russian wheat with protein of 12.5% for 2-5 $/t 192-193 up to $/t FOB.
Yesterday the Agency IKAR and " SovEcon has revised the forecasts of wheat production in Russia in 2019/20 MG through the long June drought in some regions of the country.
Experts SovEcon reduced the forecast of wheat production with up to 82,2 76,6 million tons and exports – from 37.6 to 33 million tons.
IN IKAR lowered its estimates of wheat production from 79,3 to 78.5 million tonnes, which almost corresponds to the June USDA forecast of 78 million tons.
the French wheat Market yesterday fell under pressure good forecasts of the new crop of wheat. Experts Agritel along with its 37 million tonnes, 3 million tonnes more than last year.
Traders monitor the improvement of corn in the United States. If no new issues crop prices for French wheat will hardly be retained at the current level.
Weak export demand also concerned the market.
- September futures for milling wheat on MATIF fell by 1.5 €/t to 176,75 €/m or 198,20 $/t
the Chicago stock Exchange started the week speculative amid a decline in harvest of winter wheat. According to the NASS USDA, winter wheat collected 47% compared with 61% on average for 5 years and the expectations of experts at the level of 50%. For a week the number of crops of winter wheat in good or excellent condition increased by 1% to 645, and spring – by 3% to 78%.
wheat Exports from the U.S. last week fell by 12.5% to 609,4 thousand tons, which is 2.27 times higher than 2018.
the July wheat futures in the U.S. fell:
0.37 $/t to 195,93 $/t on a firm spring HRS wheat in Minneapolis.
- 0.92 $/t to 189,87 $/t for SRW soft winter-wheat in Chicago
at the same time increased at 1.10 $/t to 162,40 $/MT of hard winter HRW wheat in Kansas city.
a stronger dollar has also put pressure on the auction and impairs the competitiveness of American grain.
