Wheat prices rose because of lower production forecast for Argentina

the Fall in oil prices and vegetable oil weighs on markets of wheat and corn, but they are supported by strong demand and further decline in production forecast for Argentina.

the experts of the Grain exchange Buenos Aires reduced the estimate of wheat production in the country in 2020/21 MG to 17.5 million tonnes, 3.5 million tonnes inferior to the may forecast, while the September USDA report, it was estimated at 19.5 million tonnes, a Large part of the agrarian regions of the country suffering from drought, and the harvest will begin in November.

strengthen the dollar until the maximum of 8 weeks stopped the growth of prices for wheat, which began on Tuesday, since has further reduced the already weak competitiveness of us wheat. Experts predict weekly export sales of US wheat in the range of 250-600 kt

On the physical market South Korea's MFG bought 65 thousand tons of feed wheat from the U.S. 1-20 January 254,98 price $/t CFR, while Taiwanese FMA contracted for 91.3 thousand tons of wheat from USA with shipment in November-December at a price 272,26-311,95 $/t CFR, which is 10-12 $/t higher than the purchase price last month.

December futures in the U.S. fell:

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by 2.76 $/t to 177,93 $/t for solid winter HRW wheat in Kansas city

2.48 $/t to 195,84 $/t on a firm spring HRS wheat in Minneapolis.

• 3.31 $/t to 201,72 $/t for SRW soft winter-wheat in Chicago

bid Prices of black sea wheat remain at 235-240 $/t FOB, while the bid price dropped to 230 $/t FOB.

Traders hope to find a compromise with the buyers from Indonesia and Pakistan who still refuse to buy expensive grain, but give procurement requests. Jordan postponed the weekly tender for import 120 thousand tons of wheat from-for too high prices.

French stock exchange yesterday turned down after Chicago, however, the decline was limited to the strengthening of the dollar against the Euro to its highest July-level.

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• December futures milling wheat on MATIF fell by 0.75 €/t to 194 €/t or 226,25 $/t

According Agrisensus, German wheat protein 12,5% offer 232 $/t FOB with delivery in October-December, Polish – for 228 $/t FOB Baltic at 228,5 $/t FOB.

Argentine wheat with protein 11.5% of the offer for 220 $/MT FOB with December delivery, and reduction in crop support prices, so do not expect a significant decline in world wheat prices in December-January under pressure from the new crop in Argentina and Australia.