Wheat prices declined ahead of USDA report
in anticipation of the release of the next report USDA traders take profits after its recent rapid price growth.
a Slight increase of wheat production in the United States and Canada will not be able to compensate for significant crop losses in Ukraine, EU and Russia, so the total world production and ending stocks will decrease. Most interested in the traders evaluation of the crop for the EU, since the day before was significantly reduced projections of wheat production for Germany and France.
Experts Strategie Grains on Thursday lowered the forecast of wheat production in the EU from 4.7 million tonnes to 127.7 million tons, and called catastrophic yields in Germany and the Scandinavian countries. But despite the dismal forecast and the depreciation of the Euro prices on Euronext fell again.
- September futures milling wheat in Paris fell by 3.5 €/t 211 €/t or 243,35 $/t
Typically, before the publication of the report USDA prices fall based on a further leap. Now the factors for growth rates do not exist: the pace of exports remains low, and the production forecast for the United States increased.
For the week, wheat exports from the US declined by 10.8% to 344,9 thousand tons and export sales by 17% to 317 thousand tons.
Analysts reduced the estimate of the wheat crop in the United States with the predicted in July of 51.2 million tonnes to 50.3 million tonnes, which will still exceed last year's 47,38 million tons.
the September wheat futures in the U.S. fell:
2.11 $/t to 212,56 $/t for solid winter HRW wheat in Kansas city
at 1.10 $/t to 231,39 $/t on a firm spring HRS wheat in Minneapolis.
- 2.02 $/t to 207,41 $/t for SRW soft winter-wheat in Chicago