The new crop is putting pressure on wheat prices
As experts predicted, on Friday, speculative game on a wheat US exchanges stopped. Chicago investors booked profits after the previous multi-day price increases, therefore, the quotations wheat turned down.
But in Kansas and Minneapolis quotations continued to grow on the news about reduced production of wheat in Argentina and Australia. Now the Australian wheat rose to record prices, so U.S. corn is becoming more attractive for buyers from Asian countries.
December quotations of wheat in the United States had the following dynamics:
- soft wheat SRW in Chicago fell 1.10 $/t to 165,16 $/t,
- durum wheat HRW in Kansas city has risen in price for 0,28 $/t to 165,44 $/t,
- hard spring wheat HRS in Minneapolis has grown by 3.86 $/t to 233,23 $/t
Russia and Kazakhstan has completed harvesting of wheat and confirmed analysts ' forecasts of record harvests.
In Russia from 87.5% of the area produced 81.2 million tons of wheat with a yield of 3.36 t/ha vs 2.87 t/ha in 2016
Kazakhstan with 96,3% of the area on 25 September and produced 20,368 million tons of grain with a yield of 1.38 t/ha.
High yields under pressure, primarily on the European wheat quotations.
- December futures milling wheat on MATIF remain at the level of 164,75 €/t (197,21 $/t).