The wheat market again in the crosshairs, the weather
international Grains Council (IGC) in its July report lowered its forecast of world production of corn, wheat and barley because of the hot and dry weather in some producer countries in North America, Europe, and Australia.
the Forecast of world wheat production reduced from 735 million tonnes to 732 million tons. Mainly through the USA, for which the forecast was reduced from 48.6 million tons to 46.7 million tons, Australia (from 24.8 million tons to 22.8 million tons), EU (149,4 million tons to 148,1 million tons). Increased the forecast for Russia from 68 million tons to 71 million tons.
weather Forecast in USA for the next 10 days is disappointing for producers. High temperatures and lack of rainfall will continue to reduce the potential yield of wheat.
in addition, the demand for U.S. wheat continues to grow particularly intensified purchase of spring wheat and total sales of whole wheat in the 2017/18 season now 1.5% higher than last season .
September quotes of the American wheat have risen:
- soft wheat SRW in Chicago by $ 0.74 to 176,28 $ / ton
- hard wheat HRW in Kansas city for $ 2,02 to 176,73 $ / ton
- hard spring wheat HRS in Minneapolis by $ 2,39 to 270,61 $ / ton
the Pace of wheat exports from the EU continue to decline over the past week were exported 67,3 thousand tons of soft wheat, and since the beginning of the season, the EU exported 642,448 thousand tons of soft wheat, which is 3.4 times less than in the same period last season.
In Europe, the ongoing rains and thunderstorms, which constrain harvesting and reduce the yield and quality of wheat, especially in Germany and much of Poland and the Baltic States.
September quotes milling wheat on the Paris stock exchange MATIF rose by € 0.75 to 168,75 € / ton (196,69 $ / tonne).