The increase in wheat harvest in the EU and the problems in the U.S. and Canada kept the market in limbo

2019-09-23 12:04:26
Machine translation
The increase in wheat harvest in the EU and the problems in the U.S. and Canada kept the market in limbo

follow the Agency Strategie Grains, the Brussels trade Association Coceral grain was increased the forecast of production of soft wheat in the EU with 141 to 143,3 million tons due to higher yields in France and the UK.


For UK forecast of production increased by 4.5% to 15.97 million tonnes for France, – by 9.1% to almost record 39,39 million tons at the same time for Germany assessment of production decreased by 6.3% to of 22.87 million tons.


the Stocks of wheat in the UK in 2018/19 MG will grow by 11% or 1.9 million tons, which is a 4-year high, due to the reduction processing by the closing of two plants for the production of ethanol.


Futures milling wheat on the Euronext under pressure to reduce production on Friday fell 0.5 €/t to 171,25 €/t or 188,7 $/t


Delayed harvest of spring wheat in the U.S. and Canada that may affect the quality of grain, increases the spread between the prices of soft and hard spring wheat. Speculative funds increased the number of short positions on hard spring wheat HRS in anticipation of rising prices due to the delayed harvest and quality problems.


wheat Exports from the United States since the beginning of the season is 20.4% more than last year and accounts for 46% of forecast USDA, compared to 52% in average of 5 years.


High domestic prices for Russian wheat constrain exports, which remain under the competitive pressure of cheap wheat from Ukraine and France, amid an abundant harvest lowered the price to sell the grain.


Russia exported last week, 800 thousand tons of wheat, and from the beginning of the season is 10.2 million tons, which is 11% below the corresponding indicator 2018/19 Mr. The head of the Russian grain Union's Zlochevsky said that the slow pace of exports will increase reserves and pressure on prices in the second half of the season, when due to the reduction of domestic prices aktiviziruyutsya grain exports.


Ukraine per week reduced the export of wheat to 762 thousand tonnes, although the whole season has sold 7.3 million tonnes, which is 63% higher than the corresponding figure for 2018/19 Mr.


the Russian wheat protein 12,5% offer in September at 186 $/t FOB, October 188 $/t FOB, while the bid price is 185 $/t FOB. Russian exporters hope for growth in demand for high-quality grain from Kazakhstan, where the quality of the wheat will decrease, after which exports will decline from 8.2 to 5.3 million tons and refining capacity will remain underutilized.


the Purchase price for wheat in Ukraine are falling due to record the strengthening of the hryvnia to a three-year high of 24.4 UAH/$, which reduces market activity.

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