Wheat prices grow due to declining production forecasts in the EU

In the June report, the experts Stratégie Grains reduced compared with the may estimate of forecast of grain production in the EU (including the UK) in 2020/21 MG of 1 million tonnes to 300,1 million tons.

Despite the promise of a good harvest of grain in Spain and the Baltic countries, the adverse winter weather and spring drought in the North-West of the EU caused significant damage to the winter crops, especially in France. Therefore, evaluation of wheat production in the EU decreased compared to may of 2.3 million tonnes to to 138.3 million tons, in particular soft wheat – 2 million tonnes to 131 million tonnes.

Wheat market in Paris on Friday fell behind Chicago and almost reached a month low. In addition to "bearish" USDA report on the prices presses a stable state of French wheat crops for the second consecutive week. However, at the end of the trading session the quotations turned up on data of low stocks of wheat in the major exporting countries and on the background of the uncertainty of harvests in the Northern hemisphere as a result of difficult weather conditions.

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• September futures for milling wheat on MATIF rose by €1/t to 183,5 €/t or 206,56 $/t

the July wheat futures in Chicago after the publication of the USDA report fell to 3-week low. Experts have raised the forecast of world ending stocks of wheat in 2020/21 MG to record levels, including for the United States.

However, at the end of the session due to speculators quotations left in "green zone".

the July wheat futures in the U.S.:

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0.55 $/t to 164,79 $/t for solid winter HRW wheat in Kansas city.

• 1.01 $/t to 184,45 $/t for SRW soft winter-wheat in Chicago

Remained at the level of 188,58 $/t hard spring HRS wheat in Minneapolis.