Increased competition lowers the price of wheat

Traders increasingly looking for buyers, that in the second half of the 2020/21 season, amid growing suggestions the new crop from Argentina and Australia will be able to acquire significant stocks of wheat in major exporting countries.

In Argentina, data on productivity is confirmed by the wheat harvest at the level of 16.8-17 million tons, of which it has already collected 40%. In Australia, where it is threshed more than 50% of the area, dry weather will allow you to collect the second highest record harvest of 30 million tons.

On the final rating Bureau of statistics Canada Pegged the wheat harvest in the country in 2020 will be the highest for the last 7 years 35.2 million tonnes, which was 557 thousand tons of inferior forecast August, but 7.7% higher than last year's figure.

this news is offset by evidence that 22% of winter wheat crops in Russia are in poor condition. In addition, the recent precipitation improved the condition of crops in the EU and USA, so the price of wheat on world markets continue to fall.

Export sales of wheat from the U.S. last week fell by 44% to 446 thousand tons, but in the whole season reached 18,492 million tons, accounting for 70% of the forecast and 11% higher than the corresponding period last year. Actual exports for the week rose by 31.5% to 451,5 thousand tons, and just season made up 12.37 million tonnes projected by the USDA of 26.54 million tons, which requires weekly export an average of 550 thousand tons.

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

the

1.47 $/t to 201,99 $/t for solid winter HRW wheat in Kansas city

0.92 $/t to 203,37 $/t on a firm spring HRS wheat in Minneapolis.

• 1.47 $/t to 214,76 $/t for SRW soft winter-wheat in Chicago

the French wheat cheaper for the 5th day in a row on sanpokong about the increased competition for European wheat in the second half of the season. The quota for the export of Russian wheat and improve crop forecast in Australia reduces export prospects of European grain.

Pessimism have added also the appreciation of the Euro relative to the dollar to 2.5-year high of 1,214 $/€.

the

• the March futures for milling wheat on MATIF fell 1.25 €/t to 203,25 €/t or 246,76 $/t

the Decline in stock prices lowered the price of European wheat on the physical market to $250/MT FOB, increasing competition from black sea wheat. Bid prices of Argentine wheat are 250-255 $/MT FOB and continue to fall.

the Intensification of sales by manufacturers in anticipation of the New year soon will increase pressure on prices.