The price of wheat has fallen off the bearish USDA report

2018-03-12 12:28:07
Machine translation
The price of wheat has fallen off the bearish USDA report

paying Almost no attention to the bearish WASDE report on Thursday, on Friday, wheat futures in Chicago and Kansas fell by 2.6 and 2.8% for the oversold market, so in the weekly summary of the wheat market lost almost 4%.

 

the Experts at the USDA increased the forecast of world wheat production by 0.5 million tonnes and the estimate for ending stocks at 2.79 million tons, the Forecast of the wheat crop for the United States is not reduced, although according to the weekly monitoring during the week the drought in the regions for the cultivation of winter wheat has increased, while rainfall remains below normal. In the South of Oklahoma and Kansas, the drought level increased to a maximum of "D4" and the whole country are suffering from lack of moisture 39% of winter wheat crops.

 

volatility of the futures market for wheat is limited by the physical market, where the growth of prices, buyers began to contract new crop 5-10 $/t cheaper than the may quotes.


According to a bearish price forecast from Societe Generale, even with a substantial reduction of the wheat crop in the US global supplies will be provided.

 

the Forecast of wheat exports from the EU reduced by 1 million tonnes, while for Russia it increased by 1.5 million tons to 37.5 million tons, although some Russian experts have estimated it at 40 million tonnes.

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