Experts, the USDA increased the forecast of wheat production to a record level
Contrary to expectations of analysts in a new report, the USDA forecast global wheat production compared to the October rating increased by 0.22 million tons to a record 765,55 million tonnes, up by 34.2 million tons higher than the figure Mr 2018/19.
as a Result of drought, the forecast of wheat production for Argentina was reduced 0.5 million tons to 20 million tons, and Australia up 0.8 million tons to 17.2 million tons, significantly higher than the 15.5 million tons, which in recent weeks has been the most optimistic estimates of local experts.
the Reduction of wheat production in the United States by 1.13 million tons because of reduced harvest of spring wheat will be offset by increased production in Russia 1.5 million tons, the EU – by 1 million tons and Ukraine – 0.3 million tonnes.
the Forecast of world trade increased by 1 million tonnes to 180,68 million tons due to increased EU exports by 1 million tonnes to 29 million tonnes, of Russia by 0.5 million tons to 34.5 million tons from Ukraine by 0.5 million tons to 20 million tons, while Argentina it decreased by 0.5 million tons to 14 million tons and Australia by 0.5 million tons to 9 million tons.
the Increase in production of wheat on a background of unchanged consumption will lead to higher ending stocks in 2019/20 MG, 0.48 million tonnes to amounted to 288.3 million tons.
Chicago on Friday, third consecutive day ended with a minus. Under pressure from the USDA report, investors have been speculative sales.
the December wheat futures in the U.S. fell:
1.19 $/ton to 154,87 $/t for solid winter HRW wheat in Kansas city
0.09 $/t to 190,51 $/t on a firm spring HRS wheat in Minneapolis.
- 0.83 $/t to 187,48 $/t for SRW soft winter-wheat in Chicago
the Paris stock exchange reacted positively to the USDA report, where was increased the forecast of wheat exports from the EU.
- the December futures for milling wheat on MATIF rose by 0.25 €/t to USD 178,5 €/t or 196,69 $/t
Prices for black sea wheat remain unchanged amid stable demand on the physical market.
Ukraine per week exported 585 thousand tons of wheat, and from the beginning of the season, 12.1 million tons, almost twice the figure for the previous MG.