The decrease in the crop forecasts for Canada led to a rise in stock prices
Wheat markets on Friday, expect a decrease in production forecasts of wheat in Canada and the EU, however, the new estimates were overwhelming for traders.
According to Statistics Canada, the wheat crop in comparison with the 2017 year will decrease by 1 million tonnes to 28,987 million tons, in particular:
winter wheat at 16% or 461,1 thousand MT to 2,394 million tons.
- spring wheat by 2.7% or 607,3 THD. MT to 21,559 million tons,
the production of durum wheat will increase by 1.4% or 71,5 thousand tons to million tons 5,034
Traders expect that wheat production in Canada is estimated at 30.6 million tons, while experts USDA's August forecast at 32.5 million tons.
the European Commission on Friday downgraded its assessment of the wheat crop in the EU compared to the July report by 4.7 million tonnes to 128.8 million tonnes, and the forecast of exports by 5.5 million tonnes to 20 million tonnes.
- After the publication of the report futures on milling wheat in Paris rose by 4.5 €/t to 204,75 €/t or 237,7 $/t
U.S. markets also rose on news from Canada and the EU, however, additional impetus to the prices provided information about the possible restriction of export of corn and wheat from Argentina, which today should take the government of the country.
Today in the United States celebrate Labor day, so the basic dynamics of growth of prices will show the European stock exchange.
the December futures for U.S. wheat has increased:
4,50 $/t to 203,28 $/t for solid winter HRW wheat in Kansas city
by 5.51 $/t to 220.00 $/t on a firm spring HRS wheat in Minneapolis.
- 3.86 $/t to 200,43 $/t for SRW soft winter-wheat in Chicago