Wheat prices rose after the publication of USDA report
In the January balance, the experts, the USDA reduced in comparison with the previous report, the forecast of world wheat production by 1 million tonnes to 764,39 million tonnes and increased the estimate of world consumption by 0.61 million tonnes to 754,37 million tons, resulting in the forecast of ending stocks was reduced by 1.42 million tonnes to 288,08 million tons.
the Forecast of wheat production was reduced for Russia at 1 million tons, Australia by 0.5 million tons, while for the EU increased by 0.5 million tonnes.
the Forecast of world trade increased by 1.26 million tonnes to 181,07 million tons due to increased estimates of wheat exports from the EU by 2 million tonnes to 31 million tonnes and Ukraine by 0.5 million tons to 20.5 million tonnes, while for Russia, the export forecast reduced 1 million tons to 34 million tons.
Thanks to active exports ending stocks will mostly decline in the EU of 1.7 million tons to 10.8 million tons.
For the United States balance of wheat left almost unchanged, despite forecasts of intensification of exports after signing a trade agreement with China.
Wheat exchange USA on Friday ignored the disastrous results of export week and focused on fundamental "bullish" factors. March wheat futures in Chicago settled on the high end of June level.
the Experts, the USDA estimated the winter wheat sown areas under the harvest 2020 in 30,804 million acres or of 12.47 million hectares, which will be the lowest since 1909 index, although it will exceed the expectations of experts in 30,664 million acres.
According to estimates by the USDA, as of December 1, 2019 stocks of wheat in the United States amounted to 1,834 billion bushels, which is 4.4% below expert expectations.
March wheat futures in the U.S.:
1.65 $/t to 181,79 $/t for solid winter HRW wheat in Kansas city
at 2.30 $/t to 205,12 $/t on a firm spring HRS wheat in Minneapolis.
- 0.83 $/t to 207,41 $/t for SRW soft winter-wheat in Chicago
the French exchange on Friday closed before the release of the USDA report, so the March wheat futures on the MATIF fell by 0.25 €/t to 191.5 €/t or 212,88 $/t