USDA predicts lower production and increased consumption of wheat in the next season
In yesterday's report, the experts, the USDA released the first forecast balance sheet for wheat for the season 2018/19. It is expected that compared to the previous my world wheat production will decline by 10.62 million tonnes to 747,76 million tons, while consumption will increase by 10.08 million tonnes to 753,89 million tons.
Assessment of production reduced for Russia at 13 million tonnes to 72 million tonnes, of the EU countries by 1.18 million tonnes to 150,4 million tons, Ukraine-on 500 thousand tons to 26.5 million tonnes, up for Australia and Canada by 2.5 million tonnes to 24 million and 32.5 t, respectively, Argentina by 1.5 million tons to 19.5 million tons.
Surprised traders increase forecast for wheat production in the United States by 2.2 million tonnes to 49.57 million tonnes despite drought in key growing areas and estimates at the level of 48.3 million tons.
the U.S. wheat Market reacted to the USDA reports a decline to 2-week low. Traders drew attention to the US data and do not account for the global balance.
Further dynamics of world wheat prices will depend on the availability of precipitation in the regions of cultivation of wheat in Europe and Russia.
July futures for U.S. wheat decreased
1.65 $/MT to 193,64 $/t for solid winter HRW wheat in Kansas city
0.83 $/t to 223,76 $/t on a firm spring HRS wheat in Minneapolis.
- 1.47 $/t to 186,10 $/t for SRW soft winter-wheat in Chicago