Wheat quotes on stock exchanges are declining in anticipation of the November USDA report

Wheat quotes on world stock exchanges reached record values last week, but by the end of the week they fell and will remain at the same level on Monday in anticipation of updated World balance sheets from the USDA.

The main focus of traders remains on the estimate of the wheat harvest in Russia, which in the October report was at the level of 72.5 million tons, while official data show that about 77 million tons have already been collected. If USDA experts sharply raise their production forecast, it could bring down global wheat markets.

December Black Sea wheat futures at Chicago SWOT hit a record $347/ton last week, but fell to.343/ton by the end of the week.

Wheat prices on US stock exchanges declined on Thursday and Friday under pressure from the decline of all commodity items and profit-taking by traders after the rise in prices.

Traders do not want to take risks before the release of the November USDA report, and even the growth of export sales for the week did not support quotes.

Wheat export sales from the United States for the week ended October 28 increased by 48% to 400.1 thousand tons, and since the beginning of the season, total sales amounted to 13 million tons or 54.6% of the total export forecast in 2021/22 MG, but still lagged 23% behind sales last season.

Traders do not yet pay attention to the low state of crops in the United States, as the area of sowing is projected to grow. The U.S. Department of Agriculture's Statistics Service estimates that 45% of winter wheat crops are in good or excellent shape as of October 31, the fourth worst performance for this week since observations began in 1986. The share of crops in poor and very poor condition is as much as 21% — the highest in history.

December US futures fell on Friday:

• by 2 2.66 / ton to Чикаго 281.6 / ton for soft winter wheat in Chicago, (-1% for the week)
• by 2 2.66 / ton to 2 286.1 / ton for winter durum wheat in Kansas City, (-1% for the week)
• by 2 2.66 / ton to 3 378.2 / ton for durum Spring hrs wheat in Minneapolis (-4.2% for the week)

The establishment of dry and warm weather accelerated wheat sowing in France. According to FranceAgriMer monitoring data, by November 1, 80% of the planned areas were sown (+19% per week), which is higher than in the previous year (75%). December wheat futures on Paris Euronext on Thursday and Friday also declined from a record 295.75 €/ton to 287.75 €/ton or 332.6. /ton.