Wheat prices tumbled after the corn market
Despite a slight decline experts USDA the forecast of world wheat production, the total volume of offers, consumption and ending stocks remain record high, and that continues to put pressure on prices. However, the main factor in the reduction of prices was the increase in the forecast of world maize production, while analysts expected it to decline, intensifying demand for feed wheat.
compared to the July report forecast world wheat production in 2019/20 MG was decreased by 3.39 million tonnes to 768,07 million tons (2018/19 Mr – 730,55 million tons) because of reduced harvest in Turkey by 2 million tonnes, the EU 1.3 million tonnes, in Russia-1.2 million tons in Kazakhstan 1 mln tonnes, which will be partially offset by an increase in US production of 1.6 million tons and Argentina by 0.5 million tons
the Forecast for world consumption was reduced by 2 million tonnes to 758 million tons (2018/19 Mr – 736,23 MMT) due to reduction of consumption in Russia and EU countries 0.5 million tons.
the Increase in exports of wheat from the United States by 0.68 million tonnes, Argentina and Ukraine by 0.5 million tons to compensate for the reduction in exports from the EU and Russia by 0.5 million tons, Kazakhstan by 1 million tons.
the Forecast of ending stocks decreased by 1 million tonnes to 285,4 mln tonnes, which will still be a record.
the Reduction in forecast wheat production in Russia to 73 million tonnes and exports to 34 million tonnes will allow Ukraine to increase exports from 19 to 19.5 million tons.
After the publication of a new report USDA September futures on soft wheat in Chicago fell on Monday by 5.6% to the lowest since may 17 level.
the September wheat futures in the U.S. fell:
by 9.09 $/t to 144,12 $/t for solid winter HRW wheat in Kansas city
3.86 $/t to 187,11 $/t on a firm spring HRS wheat in Minneapolis.
- to 10.20 $/t to 173,34 $/t for SRW soft winter-wheat in Chicago
European stocks started the week with a collapse caused by the report USDA. But in the wheat value for the price reacted to a lesser extent than corn. In addition, the weekly export report reminded about the very low competitiveness of European wheat.
- September futures for milling wheat on MATIF fell 3.25 €/t to 167,25 €/t or of 187.46 $/t