The price of wheat in the United States supported the reduction of the forecast of sowing areas
on Tuesday, the wheat exchange, the United States increased by data USDA reports on crop areas and grain stocks. As of March 1, wheat stocks in the US fell to 38.43 million tonnes, 4.9 million tonnes lower than in last year, while experts estimated them in 37.7 to 43.3 m tonnes.
the Forecasts sowing of wheat also was lower than expected. Thus, the wheat under harvest 2020, the US will be planted 44,655 million acres, which is 1.2% less than last year and 0.8% less than predicted by experts.
in Particular, in comparison with 2019 of the sowing area of wheat will decrease by:
spring by 0.6% to 12.59 million acres, which is 0.4% less expectations
durum 3.7% to 1.29 million acres, which is 14.7% less than expected.
- winter - 1.3% to 30,775 million acres, which is 0.5% less than expected,
But these figures may change as farmers may prefer sowing wheat and soybeans instead of corn, because after the fall in oil prices and demand for ethanol excess will lead to a sharp collapse in prices. Now USDA expects that the corn will be planted 96,99 million acres, which is 8.1% more than in 2019 and 2.8% more than expected.
After the rapid growth traders began to fix profit, may futures in Chicago at the end of the session declined slightly.
the May wheat futures in the U.S.:
1.65 $/t to 198,14 $/t on a firm spring HRS wheat in Minneapolis.
- by 2.29 $/t to 181,14 $/t for solid winter HRW wheat in Kansas city
Fell 0.28 $/t to 208,98 $/ton SRW soft winter-wheat in Chicago.
the Board of the EEU's decision of March 31, temporarily (until 30 June) banned the export from Russia to the area of the EAEU of certain types of food, especially rye, rice, buckwheat, millet, cereals, some types of flour and other. It will calm markets that are confused by the restrictions on exports, and stabilize prices in the near future.
in the absence of important news trading on the stock exchange in Paris ended neutrally.
- the May futures for milling wheat on MATIF remained at the level of 196,25 €/t or 216,13 $/t
the Market was supported by the USDA report forecast acreage in the United States and the results of the tender in Algeria, where it was purchased 240 thousand tons of wheat with protein 11% at an average price 245 $/t CFR, which is $2/t higher than at the previous auction a week ago, when it was contracted 240 thousand tons of wheat for delivery in June. Since the beginning of the season Algeria have already purchased 5.7 million tons of wheat, which is one third higher than planned by the government for the current season, the volume of imports.