Wheat prices decrease in the expectation of increased global production
on Wednesday, the wheat futures in Chicago dropping a third straight day. Investors close deals in anticipation of the October report USDA, which can be increased estimate of world production and ending stocks for wheat.
In all growing regions of winter wheat last rainfall, which delayed sowing, however, replenished the soil moisture reserves. According to the weekly monitoring USDA as of 08.10.17 winter wheat planted 48% of the planned areas versus 57% a year ago and 58% on average for 5 years.
December quotations of wheat in the U.S. declined:
- soft wheat SRW in Chicago by 0.74 $/t to 159,19 $/t
- for hard wheat HRW in Kansas city at 1.10 $/t to 157,35 $/t
Hard spring wheat HRS in Minneapolis has risen in price for 0,55 $/t to 227,44 $/t
the Market for wheat continued to fall due to the slow pace of exports and increased production forecasts in Russia and in the EU. The growth rate of the Euro against the dollar also reduces the competitiveness of European wheat.
- December futures milling wheat on MATIF fell by 1.25 €/t to 161,75 €/t (192,09 $/t).
the Demand for Ukrainian wheat is fairly high, as traders try to attract more volumes to the beginning of the massive export of corn. The problems with grain transportation by rail to remain, and, if necessary, quick shipment of corn for the formation of the first legal parties, again there last year's collapse in logistics. But if last year the main problem was the shortage of empty grain cars, but this year has added the problem to the faulty station locomotives of the Ukrainian Railways, which are not able to submit and pick up wagons at the elevators.