Wheat prices fell after the publication of USDA report

2019-10-11 13:22:14
Machine translation
Wheat prices fell after the publication of USDA report

the October USDA report for wheat was almost unchanged compared with the September balance that meets the expectations of the traders. They expected significant changes in the balance for corn, which would support wheat prices, but this did not happen.


According to the forecast, wheat production in the U.S. will decrease by 500 thousand tons, Australia – 1 million tons, Canada – to 300 thousand tons, which is almost offset by the increase in harvest in the EU of 1 million tons For Russia, the forecast of production left at 72.5 million tons, while the Ministry of agriculture of the Russian Federation increased it to 75 million tons For Argentina, the estimate of wheat crop left at the level of 20.5 million tonnes, although the local Exchange has reduced its forecast to 20 and 19.8 million tonnes, a Slight reduction in forecast wheat production in Canada does not yet account for crop losses from frost and snowfalls.


Assessment of the global consumption of wheat in 2019/20 Mr reduced by 1.15 million tonnes to 755,1 million tonnes (736,4 million tonnes in 2018/19 MG), which will lead to an increase in world ending stocks to a record 287,8 million T.


Ending stocks of wheat in the U.S. will grow by 800 thousand tons, in the EU and Russia – to 410 thousand tons, Kazakhstan – on 330 thousand tons, the countries of the Middle East – 240 thousand tons.


American stock exchange was expecting a bullish report and the rising prices of wheat and corn. Therefore, after the publication of the report, prices fell by 2.5-3%. They are unable to support even an increase in the weekly exports of wheat from the United States to 521,9 thousand tons, which exceeded expert expectations.


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


by 3.67 $/ton to 148,17 $/t for solid winter HRW wheat in Kansas city

to 2.39 $/t to 196,67 $/t on a firm spring HRS wheat in Minneapolis.

  • by 2.66 $/t to 181,14 $/t for SRW soft winter-wheat in Chicago


- the Paris stock exchange, and Chicago, were surprised by USDA report, and responded to his sharp decline.



  • the December futures for milling wheat on MATIF fell by 1.75 €/ton to 177 €/m or 19 $/t


in addition, wheat exports for the week decreased by 14.15% to 521,94 thousand tons.

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