Active collection of wheat in the United States lowers the stock price
Reduction in forecast wheat production in the EU and active collecting in the United States are the main factors shaping exchange rates. The market also supports hot weather in the black sea.
Through the arid conditions in Germany, France and Denmark experts Coceral lowered the forecast of wheat harvest in the EU-27 and the UK in 2020 by 5.7 million tonnes to 129.7 million tons compared with last year 146,8 million tons.
For the week, the EU exported 133 thousand tons of wheat, and in General in 2019/20 MG as of 7 June to 32,316 million tonnes of soft wheat, which is 65% higher than the corresponding figure 2018/19 Mr.
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- But despite the strong exports and a decline in production forecast for September futures for milling wheat on MATIF followed Chicago fell 0.75 €/t to 186 €/t or 209,9 $/t
the American stock exchange fall under the pressure of active harvest and a gradual strengthening of the dollar. Dry and warm weather in the South American Plains contributes to grain formation and activates the cleaning work. As of 8 June, winter wheat in the United States are collected at the 7% area, which corresponds to the average 5-year level, although last year on this date it has been threshed only 3% of the area.
the Number of winter wheat crops are in good or excellent condition, a week is not changed, while spring wheat rose by 2% to 82%.
wheat Exports for the week decreased by 22% to 432,9 thousand tons, and just season reached 25.1 million tonnes projected by the USDA to 26.4 million tons.
the July wheat futures in the U.S. fell:
the
0.28 $/t to 169,20 $/t for solid winter HRW wheat in Kansas city.
- 1.38 $/t to 187,94 $/t for SRW soft winter-wheat in Chicago
Rose by 2.02 $/t to 192,63 $/t hard spring HRS wheat in Minneapolis.
amid hot weather in southern Russia the July futures for black sea wheat in Chicago rose to 206 $/t, the August – to 207 $/ton, the September – to 208 $/t in December to 217 $/t
Export price of wheat of new crop with protein 12.5% and July delivery on the physical market in Russia rose for the week, according to SovEcon, 2.5 $/t 204.5 $/t FOB, and according to IKAR by 6 $/t to 206 $/t
For the week, Russia has reduced the export of wheat from 146 to 118 thousand tons, but in the whole season as of June 4, exported 30.3 million tons.
