Global wheat prices soften in June: USDA

Wheat prices in most major exporting countries fell during the month of June, mainly influenced by northern-hemisphere harvest pressure and expectations of a record high global wheat supply, according to the July USDA Foreign Agricultural Service report.

Russian prices in June were pressured by the approaching harvest amid relatively favourable conditions to date, while EU prices declined, despite lingering concerns over dryness in some European countries.

However, EU and Russian wheat prices have rebounded in recent days on expectations of smaller crops for both origins, and production prospects for Morocco and the US have also been reduced this month.

Canada’s prices also declined on seasonal pressure and expectations for a large crop, while US prices moved lower with its winter-wheat harvest now past halfway, but losses were limited by market reactions to the USDA’s national crop area report.

Australian prices plummeted as quotes now reference new-crop prices, which reflect expectations of a much larger crop.

The exception has been Argentina, where values edged higher on seasonally tightening supplies.

The global consumption forecast has been lowered, mainly on reduced feed and residual use in the EU. Global trade is also down as reduced shipments from the EU more than offset higher exports for Australia.

Global production in the 2019-20 marketing year now nearing its end is virtually unchanged this month, while global consumption is lowered with reduced feed and residual use in the US and the EU.

Global trade is up with slightly larger imports for China, the EU and Turkey, and exports have been raised for the Canada, EU and  Russia.

Grain Central