The increase in production forecast for Russia collapses, the price of wheat
Yesterday the wheat markets of the US and Europe were under pressure from data of the Ministry of agriculture of Russia to increase the forecast of grain production in the current season up to 100-105 million tons and without the need for the introduction of export duties for wheat.
- September futures on milling wheat in Paris fell by 4.5 €/t 204.5 €/t or 236,79 $/t
In Russia the harvest accelerated due to dry weather and as of 21 August, from 23.7 million hectares (51% of area) harvested 72.5 million tons of grain and leguminous crops with the yield of 3.05 t/ha against a 3.87 t/ha in 2017 in particular, from 58.6% acreage harvested 54.2 million MT of wheat with a yield of 3.39 t/ha vs. 4.2 t/ha in 2017.
the offer Prices for Russian wheat with 12.5% for delivery in October FOB reduced by 3-4 $/t to 225-230 $/t
the Market for U.S. wheat continues to fall since the beginning of the week, the September wheat futures in Chicago lost of 12.21 $/t
the September wheat futures in the U.S. fell:
4.69 $/t to 196,39 $/t for solid winter HRW wheat in Kansas city
2.02 $/t to 216,32 $/t on a firm spring HRS wheat in Minneapolis.
- by 5.51 $/t to 193,73 $/t for SRW soft winter-wheat in Chicago
In Ukraine, the reduction in export demand, wheat prices declined slightly. The lack of containers in the port terminals and the increase in wheat supply enables traders to lower the purchase price.