Wheat prices turned down after the previous rapid growth

Weather factors continue to define the price trends of the markets of agricultural crops. Harvest forecasts of wheat to Russia and Australia are improving, while for Argentina and the EU deteriorate, however, a General increase in sentences soon will increase pressure on prices.

the experts of the IGC in the August report increased compared with the July forecast global wheat production in 2020/21 MG from 762 to 763,3 million tonnes, which will exceed 762,2 million tonnes of season 2019/20. Thus, in comparison with the previous report, this production estimate raised for Australia from 26.2 to 27.5 million tons (15.2% in 2019), Canada – from 33.7 to 34.9 million tonnes (32,3), Russia – 78 to 79.3 million tonnes (73,6), USA – from 49.6 to 50 million t (52,3), and decreased for the EU from 125,6 to 121.8 million tonnes (155 in 2019), Kazakhstan, from 12.9% to 12.4 million tons (11,5).

Other analysts estimate the wheat production in Russia at 80.5-82 million tonnes, and Australia – in the 31-35 million tons.

compared with the July estimate of world ending wheat stocks in 2020/21 MG increased from 288 to 293,6 mln tonnes, which significantly exceeds the 279,4 million tons of the 2019/20 season.

the European Commission's Experts have reduced in comparison with the previous report, the forecast of wheat production in 2020 EU countries (excluding the UK) by 3.2 million tons to 113.5 million tonnes, which is significantly inferior 130,9 million tonnes in 2019

As of Aug 27, in Russia from 19.8 million hectares or 67,4% of the area harvested 69,9 million tons of wheat with a yield of 3.53 MT/ha. wheat Exports from Russia for a week has decreased to 762 thousand tonnes, and since the beginning of the season was 6.2 million tonnes, which is 12% less than the previous year.

Ukraine per week exported 756 thousand tons of wheat, and from the beginning of the season to 4.2 million tonnes, which is 2% higher than last year's pace.

Canada stimulates export, and shipped 329 thousand MT of wheat, and from August 1 – 1.2 million tonnes, which is 28% higher than the corresponding figure 2019

the American stock exchange on Friday traded diversified under the influence of bipolar factors. Prices pressed record profits, increased collection and good productivity. Amid moderate demand for SRW-export wheat HRW wheat is going fast.

the September wheat futures in the U.S. fell:

the

1.56 $/t to 190,51 $/t on a firm spring HRS wheat in Minneapolis.

• 1.19 $/ton to 198,14 $/t for SRW soft winter-wheat in Chicago

has Risen in price for 0,39 $/t to 169,66 $/MT of hard winter HRW wheat in Kansas city.

bid Prices of black sea wheat has grown to 212-215 $/t FOB, while the bid price does not exceed 205 $/MT FOB as buyers expect a seasonal decline.

In Ukraine, purchasing prices for wheat rose to 206-207 $/t FOB due to traders who need to close the next contracts.

in the Near future the price will start to drop under the pressure of the harvest in the U.S., Canada and Russia, as well as a decline in export demand due to high prices.