Prices for hard wheat and durum growing due to the reduction of production

2019-09-30 12:50:16
Machine translation
Prices for hard wheat and durum growing due to the reduction of production

a new report by the IGC forecast world production of durum wheat in 2019/20 Mr reduced compared to the previous estimate of 1.1 million tons to 35.7 million tons, whereas in 2018/19 MG were collected 38.2 million tons.

 

thus, in comparison with the August report production estimate for the EU has reduced from 8.4 to 8 million tons (2018 – 8.7 million tons), Kazakhstan – from 2 to 1.5 million tons (2018 – 2 million tons), Canada, from 5.2 to 5 million tonnes (to 2018 – 5.7 million tonnes).

 

In the U.S. in Montana, the weekend fell 25 cm of snow. Precipitation with the snow passed in the canadian provinces of Saskatchewan and Alberta, which delays the harvest of durum wheat and spring, and affects the quality of grain. Cold rainy weather will last at least another week, and will be the main supportive factor of wheat prices.

 

the European Commission has increased the forecast of wheat production in the EU from 142,7 to 146.1 million tons, which is 12.5% higher than the harvest of last year and by 2.5% - the average 5-year average.

 

  • Despite this, the milling wheat futures in Paris on Friday increased by 1.5 €/t 174 €/t or 190,25 $/t the decline of the Euro and the rise in price of Russian wheat.

 

U.S. markets on Friday was trading in different directions: soft wheat in Chicago rose in price due to problems with the harvest in Argentina and Australia, and the firm became cheaper, as traders took profits. Moisture deficit worsens the condition of wheat crops in Argentina. In Australia in the next 2 months, the temperature will be above normal and rainfall below. In Canada, precipitation with snow will prevent the wheat harvest.

 

December wheat futures in the U.S. had the following dynamics:

0.28 $/t to 149,73 $/t cheaper solid winter HRW wheat in Kansas city

0.64 $/t to 200,98 $/t cheaper solid spring HRS wheat in Minneapolis.

  • at 1.10 $/t to 179,03 $/ton rose soft winter SRW wheat in Chicago

 

bid Prices of Russian wheat protein 12,5% up to 194-195 $/MT FOB that patagonula of demand prices for delivery in November up to 190 $/t FOB. The market has not yet responded to the increase in forecast production, since the Eastern regions of the country, for which increased yield estimation, almost never exported through the black sea ports, so will not increase the number of proposals the market.

 

As of 27 September in Russia, with 90.5% of the harvested acreage of 73.6 million tonnes of wheat at a yield of 2.9 t/ha (2018 – 2,93 t/ha), which will allow to raise the estimated by the Ministry of agriculture 75 million tons.

 

Ukraine in the new season exported 8.2 million tons of wheat, which is 61% higher than the 2018 Prices for wheat with protein 11.5% of the remain at 187-188 $/t FOB despite strong demand.

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