The balance of the USDA for wheat fell short of market expectations
In the August report USDA the forecast of world wheat production further reduced by 6.6 million tonnes to 729,6 million tons, which is 3.7% to yield a crop the previous season. Most production estimate lowered for EU countries – from 7.5 million MT to 137.5 million tons, while European analysts have estimated it at 127-135 million tons For Russia, the forecast of production unexpectedly increased by 1 million tons to 68 million tons For the U.S. crop forecast was reduced by 0.1 million tons to 51.1 million tonnes, which is 8.7% higher than the previous season. In Canada, the gross harvest will increase by 8% to 32.5 million tons, Argentina – to 19.5 million tons.
the Market had expected a more significant reduction of forecast production and ending stocks for wheat, therefore, made public a report collapses the price of wheat in Chicago by 3.5%.
More rates on pressure drop adjacent markets of corn and soybeans. For both cultures the experts USDA predict record yields, thereby the soybean crop could be the largest in history, and the corn crop is the third most important.
the September wheat futures in the U.S. fell:
by 7.07 $/t to 214,95 $/t for solid winter HRW wheat in Kansas city
by 7.72 $/t to 223,67 $/t on a firm spring HRS wheat in Minneapolis.
- by 6.52 $/t to 200,89 $/t for SRW soft winter-wheat in Chicago