The price of wheat falling under the pressure of fundamental factors

2019-12-19 12:05:07
Machine translation
The price of wheat falling under the pressure of fundamental factors

After the jump in wheat prices to a six-month high on Tuesday, investors began to fix profit and to carry out speculative sale. In the second half of the season on the prices presses a significant factor in world wheat stocks and forecasts of a warm winter, which increases the probability of obtaining a good harvest.

 

the agricultural Markets soared on news of progress in trade negotiations between the US and China. But on Wednesday, the skeptics doubted that China will fully implement commitments to purchase Agroservice. To the fact, in a December report USDA were Stlichen forecasts the production of wheat and maize in China.

 

In India thanks to the expansion of cultivated areas expected to harvest a record wheat within the 103-105 million tonnes, to collect which will begin in March. In early December, stocks of wheat were the highest for 7 years 35,175 million tonnes, which is concerned about the Federal government. Domestic demand for wheat from the state reserve is quite low because of the high prices set by the state Corporation FCI. This can lead to subsidization of wheat exports from India in the spring of 2020.

 

High prices for Russian wheat revive exports, January-February, the producers are stepping up sales amid higher acreage and good condition of crops. Promised by the Russian authorities subsidies to transport 2.1 million tons of grain from Siberia and the Urals to the ports during February-August, also increases export supply.

 

French wheat after the update Monday 2-week high gradually cheaper after Chicago, which is reduced from the earlier six-month high.

 

  • March wheat futures on the MATIF fell yesterday by 0.75 €/t to 185,25 €/t or 206,09 $/t

 

the Prices for the physical market in France remained stable because of high export demand compensates for the logistics associated with the railway strike.

 

March wheat futures in the U.S. fell:

1.74 $/t to 169,84 $/t for solid winter HRW wheat in Kansas city

0.09 $/t to 197,86 $/t on a firm spring HRS wheat in Minneapolis.

  • by 2.94 $/t to 201,44 $/t for SRW soft winter-wheat in Chicago

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