The December USDA report was bearish for wheat prices
Tuesday was the seventh consecutive trading day falling of quotations of American wheat. The main reason was the report USDA, in which the forecast of world ending stocks of wheat in 2017/18 MG increased by 890 thousand tons to a record 268,42 million tons.
For US the report was too pessimistic, as the forecast of wheat exports reduced by 680 tonnes to 26.54 million tons and the estimate for ending stocks increased by 680 THD. MT to of 26.13 million tons.
Forecasts exports to Russia increased by 0.5 million tons to 17 million tons and 33.5 million tons, respectively.
another Bearish influence of the report was so powerful that the markets ignored the news about the purchase by Algeria of 120 tonnes of us wheat and Morocco announced a tender for the procurement of 700 thousand tons of soft and hard wheat.
Another victory of Russian wheat in the Egyptian tender does not surprise traders, who only record a downward trend in the price relative to previous trades.
Yesterday, GASC bought 235 thousand tons of Russian and 60 TMT of Romanian wheat at the price 192,45 $/t FOB with delivery in January.