USDA reports collapse the price of wheat
the Promulgation of the January forecast balance USDA and report the sown area of winter wheat and quarterly balances have fallen off in Friday market for U.S. wheat. Daily drop in March futures was the largest since August, 2017, and amounted to almost 3 percent.
Assessment of the sowing area of winter wheat decreased to the lowest since 1909 level – 32,608 million acres, which, however, exceeded the pessimistic expectations of experts. Quarterly wheat stocks amounted to 1,874 billion bushels, which is inferior to last year's level, however, corresponds to the forecasts of market participants.
Unexpected troubles was the increase in estimates of ending stocks of wheat in the United States in 2017/18 MG 790 kt to 26.92 million tons, due to reduced domestic consumption and import growth.
Despite traders ' expectations for a significant reduction in global ending stocks forecast was reduced only at 400 THD. MT to 268,02 million tonnes, a Reduction of ending stocks for Australia by 2.73 million tons offset by increased production in Russia by 2 million tons.
March U.S. wheat futures fell:
by 5.14 $/t to 156,62 $/t for solid winter HRW wheat in Kansas city.
5.97 $/t to 225,14 $/t on a firm spring HRS wheat in Minneapolis.
- 4.69 $/t to 154,50 $/t for SRW soft winter-wheat in Chicago
Sharp rise of the Euro to the highest level of the last three years continued drop in the price of French wheat.
- March delivery milling wheat on MATIF fell by 1.75 €/t and reached a new low 157,25 €/t (190,92 $/t).
Report USDA has been bearish for European wheat because of the forecast of exports was reduced and the estimate for ending stocks increased.