A neutral USDA report did not support the price of wheat
March nit almost USDA has not changed the global balance for wheat of season 2019/20. The decrease compared to the previous evaluation report, the initial stocks of 0.7 million tonnes to 277,57 million tons will be offset by the growth in global production by 0.54 million tonnes to 764,49 million tons due to increased harvest in India-1.41 million tons to a record 103,6 mln t, Argentina by 0.5 million tons to 19.5 million tons despite reduced production in Turkey is 1 million tons to 18 million tons and Australia by 0.4 million tonnes to 15.2 million tonnes.
Forecast world exports increased by 0.8 million tonnes to 183,6 million tons thanks to the increase of Russian exports by 1 million tonnes to 35 million tonnes (mainly to Turkey) and Argentina by 0.5 million tons to 13.5 million tons, that compensates for the reduction of exports from Canada, by 0.5 million tonnes to 23 million tonnes and Australia 0.2 million tonnes to 8 million tonnes.
Assessment of world import of wheat increased by 0.72 million tons thanks to the increase in purchases of Turkey by 2 million tons to a record 10.5 million tons in the same period of 6.37 million tonnes due to the increase in consumption, reduced production and introduced by the government for duty-free importation of additional parties for the sake of stabilizing domestic prices. Turkey for 10 years, is ramping up imports of wheat and will be in 2019/20 Mr third largest importer after Egypt and Indonesia. For Bangladesh, the import forecast is raised 0.5 million tons to a record 6.5 million tonnes, while it decreased for the EU by 0.5 million tons to 4.8 million tons, Iraq and Lebanon – to 1.35 million tons.
although Ending stocks will be reduced due to increased trade and consumption with 288,03 to 287,1 million tons, still remain at a record level.
Wheat exchange yesterday have grown on news of the recovery of world financial markets. However, European prices of wheat puts pressure an increase in the forecast of wheat exports from Russia. Now the market of French wheat was awaiting the outcome of procurement tenders in Algeria and Tunisia.
- the May futures for milling wheat on MATIF fell by 0.5 €/t up to 178 €/t or 201,55 $/t
Prices in Chicago yesterday continued growth is solely due to speculators. Thisit USDA on bidding is almost not affected, because forward-looking indicators for the US have remained unchanged, although the estimate for world ending stocks was much lower than analysts had expected.
the May wheat futures in the U.S.:
1.38 $/t to 163,41 $/t for solid winter HRW wheat in Kansas city.
- 1.29 $/t to 191,89 $/t for SRW soft winter-wheat in Chicago
has Fallen in price on 0,74 $/t to 190,60 $/t hard spring HRS wheat in Minneapolis.