A bearish USDA report lowered wheat prices

Report USDA, which increased the forecast of world production and exports of wheat from Russia, continues to put pressure on wheat prices.

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Monday, wheat prices in Paris dropped by 1.25 €/t to a two-month low 201,75 €/t or 227,59 $/t

Traders are disappointed with the limited wheat exports from the EU, who last week was only 118 thousand tons, and from the beginning of the season of 10.12 million tonnes, which is 22% less than the corresponding indicator of the previous MG.

American stock exchange finished trading in all directions. Prices supported an increase in the weekly exports of wheat from the USA at 27% to 562,3 thousand tons, which is 12.5% more than the corresponding week last year.

the March wheat futures had the following dynamics:

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of $0.18/t to 181,42 $/t cheaper solid winter HRW wheat in Kansas city

1.93 $/t to 210,81 $/ton rose solid spring HRS wheat in Minneapolis.

0.37 $/t to 190,42 $/ton rose soft winter SRW wheat in Chicago

Prices for Russian wheat with protein 12.5% retracement of 2014 and stood at 247-249,5 $/t FOB deep-sea ports, 7-10 $/t higher than the price of European wheat.

As of January 1, wheat stocks in Russia amounted to 21.7 million tonnes, which is 27% or 8.2 million tonnes lower than in on 01.01.2018, In comparison with the previous year was most of all reduced residues of wheat in regions of the South and the North Caucasus – by 39% to 6 million tonnes, Stavropol Krai – by 46%, Rostov region – 34%, in the Kuban region – 26%.

grain Export from Russia exceeds last year’s pace. According to the FMS, as of February 7 shipped 32.6 million tonnes of grain, which is 3% more than in the same period of 2017/18МР.

in Particular exported:

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barley – 3.4 million tons,

corn is 1.5 million tons.

wheat – 27,3 million tons,

High purchase prices will encourage producers to actively market, especially with the approach of spring, when the threat passes the losses of winter crops, therefore the number of offers of Russian wheat will increase.

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