Wheat prices fall despite a forecast reduction in global wheat production

2020-07-24 12:06:12
Machine translation
Wheat prices fall despite a forecast reduction in global wheat production

In the July report, the international Grains Council (IGC) has reduced the forecast of world wheat production in 2020/21 MG of 6 million tons, but the forecast of world wheat supply in the world will remain at 1.5% and ending stocks is 4.3% higher compared to last season.

 

the Response of wheat markets, the decrease in production was restrained as traders expected a more significant decline in forecast production in the US, the EU and Russia. After a 2-day largely speculative growth of quotations of futures for wheat in Chicago declined.

did Not receive the support and upbeat data on export sales of US wheat for the week which amounted to is 616.7 thousand tons and exceeded the expectations of traders, while 19% less than a week ago and 6% lower than a year ago. Total export sales since the beginning of the season account for 8.9 million tons of wheat, which is 5% higher than a year ago. Buy China 127 thousand tons of U.S. wheat last week, more optimistic markets, but did not become a key factor in rising prices.

wheat Exports from the United States for the week amounted to 527,9 million tonnes, while total exports since the beginning of the season is 3.4 million tonnes, which is 1% higher than last year's level.

 

September quotes of the American wheat have decreased:

the

  • soft Wheat SRW in Chicago by $1,84 to 194,55 $ / t;
  • the
  • hard Wheat HRW in Kansas city for $2.66 to 162,13 $ / t;
  • the
  • hard Wheat HRS in Minneapolis for $1.75 to 187,39 $ / t

 

At the auction Thursday quotes September French wheat weakened slightly. The main "conductor" of the auction was the Euro exchange rate is against the US dollar rose to its highest level since October 2018.

 

Weak export and domestic demand for European wheat is bothering the market so much so that he ignored the forecast reduction of European IGC wheat production by 2.8 million tons to 125.6 million tonnes, mainly through Bulgaria, France and Poland. Wheat exports from the EU for the week amounted to 74,5 thousand tons and total exports since the beginning of the season is only 460 thousand tons? which is 52% less than a year ago.

 

September quotes milling wheat on the Paris stock exchange MATIF fell by €0.25 to the 183.50 €/and (213,08 $/s).

Futures for black sea wheat rose yesterday to:

the

  • 1% to 210$/MT for the August contracts
  • the
  • 1.1% to 211,75$/MT for the September contracts
  • the
  • 0.5% to 218$ / MT for the December contracts

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