The likely increase in forecast world production lowers the price of wheat

2018-10-11 12:06:35
Machine translation
The likely increase in forecast world production lowers the price of wheat

Since the beginning of the week the prices of European and American wheat exchanges are reduced in anticipation of a new balance of supply and demand from the USDA.

 

Traders expect the reduction of the yield in Australia will be offset by increased production in Russia and the United States, which will increase global wheat production. And ending stocks of wheat will increase at the expense of the United States.

 

prices are pushing the demand for wheat, caused by the rise in world prices, and favourable for sowing winter wheat weather in the major producing countries.

 

Ministry of agriculture of France in the October report reduced the forecast of production of soft wheat on 300 thousand tons to 34.2 million tons, which is 6.5% lower than in 2017, however, increased its forecast for exports by 0.7% to 16,798 million tonnes, which will be 4.1% less than exports last MG. The reduction of the production forecast with increased estimates of exports have been unable to support prices, especially amid a strengthening Euro.

 

  • December futures on milling wheat in Paris fell by 0.75 €/t to 202,75 €/t or 234,36 $/t

 

quotations of December futures wheat in Chicago on Wednesday fell to a week low in anticipation of the increase in final stocks of wheat in the world and in the United States, in particular, the new USDA report.

 

market pressure and weather factor. In the Central and southern Us Plains were favorable precipitation, although in some areas of the States of Kansas and Oklahoma of crops washed away and requires re-seeding.

 

Sowing of winter wheat is quite active, and already sown 57% of the area compared to 54% a year ago.

 

December futures for the American wheat has fallen:

1.19 $/ton to 189,69 $/t for solid winter HRW wheat in Kansas city

0,64 $/t to 217,43 $/t on a firm spring HRS wheat in Minneapolis.

  • 1.65 $/MT to 187,57 $/t for SRW soft winter-wheat in Chicago

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