The USDA report collapses the price of wheat

2019-03-11 12:32:30
Machine translation
The USDA report collapses the price of wheat

In the March report of FAS USDA estimate of world wheat production in 2018/19 Mr reduced compared to the February forecast by 1.7 million tons to 733 million tonnes, primarily through a significant reduction in crop estimates for Kazakhstan and Iraq.

 

the Main surprise was the reduction of the forecast of world consumption of wheat by 5.1 million tons due to reduced consumption in India is 3 million tons to 95 million tons, which is inferior to even last year to 95.8 million tons.

 

Surprised the market and increased the forecast of wheat exports from the EU of 1 million tonnes to 23 million tonnes, while export growth is significantly lower than last year.

 

Assessment of world imports increased, primarily due to Algeria and Morocco, which are traditional buyers of French wheat and the Philippines, however, import forecast was reduced for the EU, Mexico, Bangladesh and Venezuela.

 

World ending stocks rose by 3 million tonnes to 270,5 million tonnes, which is 3% less than the record high in 2018.

 

in Anticipation of the publication of the report of the exchange, wheat prices fell, however, on Friday traders intensified speculative buying because I realized that the potential of lower prices is almost exhausted.

 

the Traders did not respond to the forecast reduction of exports and increase ending stocks of wheat in the United States, however, drew attention to the new crop, which will be lower than last year.

 

May futures U.S.:

the

1.19 $/ton to 158,27 $/t for solid winter HRW wheat in Kansas city.

  • 0.46 $/t to 161,48 $/t for SRW soft winter-wheat in Chicago

Fell 1.38 $/t to 201,81 $/t hard spring HRS wheat in Minneapolis.

 

In the EU, Friday's trading ended before the release of the USDA report, so the market reaction will be known only today.

 

news about the good condition of crops and an increase in the forecast of production in the EU may futures for milling wheat on Euronext fell by 0,75 €/t to 183,75 €/t or 206,48 $/t

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