Wheat prices declined in anticipation of the publication of USDA report

Before the promulgation of the new balance USDA traders were taking profits after the previous significant price increases that have slowed the market.

Experts expect lower estimates of world production and carryover stocks of wheat in October report, due to the increase of harvest in Russia will not be able to compensate for its reduction in the United States and Argentina.

the World's wheat production will remain at a record level, but the intentions of individual countries to build up stocks amid a new wave of the pandemic Covid-19 led to a rise in prices to 5-year high.

According to the average estimate leading agencies world ending stocks of wheat will decrease by 1 million tonnes to 318,8 million tonnes, 19 million tonnes will exceed the level of Mr and 2019/20 will be at a record level.

Due to the good harvest in Australia, the EU and Russia, the FAO raised the forecast of world wheat production by 5 million tons to 765 million tons, while the USDA in September estimated it at 770,5 million tons.

After 4 days of growth, the December wheat futures in Chicago rose by 13.68 $/t, updating the 5-year high. The price of hard spring wheat in Minneapolis was supported by the revitalization of its exports. But yesterday, investors began to take profits, which led to lower prices.

Export sales of US wheat over the week grew to 530,6 thousand t, and in total, the season was 14.5 million tonnes, which is by 8.15% higher than the corresponding figure 2019

the Actual exports of wheat over the week grew by 8.8% to 702,7 thousand tons, and just season amounted to 9.5 million tonnes, which is 6% higher than the corresponding level in 2019.

December futures in the U.S. fell:

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by 5.28 $/t to 194,28 $/t for solid winter HRW wheat in Kansas city

by 5.42 $/t to 199,33 $/t on a firm spring HRS wheat in Minneapolis.

• by 5.95 $/t to 218,71 $/t for SRW soft winter-wheat in Chicago

On the stock exchange in Paris yesterday also recorded profits. In addition, the market pressure and the lack of export demand for French wheat and better weather, which helped to intensify field work. For the week from the port of Rouen shipped only 114.6 thousand tons of wheat (in China).

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• December futures for milling wheat on MATIF fell by 1.5 €/t to 199 €/t or 234,28 $/t

On the physical markets continues high growth of prices. Black sea wheat price increased to 245-250 $/t FOB amid the containment of sales and fulfilling contracts.

Russia planted winter crops 14.6 million ha or 76% of the planned areas, and from 28.6 million hectares or 97.3% of the area produced 86.7 million tons of wheat with a yield of 3.03 t/ha.

Turkish news Agency TMO to tender on 8 October gained 135 thousand tons of milling wheat with protein 12.5% and shipping 16 Oct – 2 Nov at an average price of 256,57 $/t CFR, which is by 11.41 $/t higher than at the previous tender on September 16, however, lower than expected, which confirms the predictions of the gradual decline in prices as more proposals.

In the market there were offers of Australian wheat for delivery in December at a price of 260-265 $/t FOB, on the Argentine 225-235 $/t FOB and canadian at 255-260 $/t FOB with a protein of 13.5%, while prices for European wheat are 233-238 $/t FOB.

In Ukraine, purchasing prices for wheat grew up in port to a record 230-233 $/t or 7900 UAH/t due to containment of sales producers who enjoy higher prices during the month 1000 UAH/t and expect further growth in light of possible problems with future harvest-induced precipitation deficit in the South-East and center of Ukraine.