Wheat prices are awaiting today's USDA report

In today's report USDA traders expect to see a significant correction of forecasts of production of soybeans and corn. Balance sheets for wheat is unlikely to undergo significant changes due to favorable weather conditions in major producing countries.

Yesterday on the stock exchanges demonstrated a slight growth of speculative prices, as traders predicted rising prices for soybean and corn will support wheat prices.

• September futures on milling wheat in Paris after three days of decline yesterday rose 0.5 €/t to 173,5 €/t or 195,42 $/t on data of the low protein content in the wheat of the new harvest.

the Preliminary results of the collection of soft wheat in France showed that the protein content in the grain does not exceed 11%, which is the minimum required for the export level. Soufflet experts said that in the export-oriented area around the port of La Polls a consequence of the high yields of soft wheat was the protein content in the range of 10.7 to 10.8%.

the Chicago stock Exchange after a two-day fall turned up on the eve of the release of the new balance USDA, as traders closed short positions in anticipation of a decline in forecast ending stocks of wheat in 2019/20 Mr in the world and, in particular, in the United States.

Mission USDA in Australia reduced in comparison with the June forecast estimate of wheat production in the country with 22.5 to 21.5 million tons (8% higher than the figure recorded last year), and exports to 12.5 million tonnes (30% exceeds that of 2018).

South Korean recycler KOFMIA purchased 130 thousand tons of milling wheat for September delivery at a price 233 $/t, including 50 thousand tons of Australian wheat.

Prices further supported the dollar.

the July wheat futures in the U.S.:

0.28 $/t to 162,13 $/t for solid winter HRW wheat in Kansas city.

• 0.73 $/t to 188,03 $/t for SRW soft winter-wheat in Chicago

Fell 1.56 $/t to 191,98 $/t hard spring HRS wheat in Minneapolis.

Prices on black sea wheat on FOB basis remained stable:

protein 11.5% of 183 to 185 $/t,

forage 175-177 $/t

• protein 12,5% 190-192 $/t,

As of July 10, in Ukraine 35,4% of the area harvested 8 mln MT of winter wheat with a yield of 3.49 t/ha (in 2018 of 3.03 t/ha). Cool weather with rainfall next week may slow harvest and reduce grain quality.

In Russia, 6.3 million hectares and produced 24.5 million MT of wheat with a yield of 3.87 t/ha (2018 3.95 MT/ha). Grain quality better togoro and dry weather will speed up the cleaning.