Despite the increase in production forecast for wheat prices continue to rise

The experts of the International Grains Council (IGC) in its may report increased the forecast of world wheat production in 2019/20 MG for 4 million tonnes to 766 million tonnes, which is 4.5% higher than the figure recorded 2018/19 Mr. The forecast consumption is left almost unchanged at 753 million tons, resulting in ending stocks will rise to a record 276 million tons, which is 4.9% over the previous season.

Traders are trying to assess how prolonged precipitation in the U.S. will worsen the quality of winter wheat.

After a minor speculative adjustments to the U.S. wheat market yesterday resumed its growth against the background of prolonged rainfall, in some regions led to flooding.

Prices supported the closure of the investors short positions and price rally in the neighboring corn market.

the July wheat futures in the U.S.:

by 9.46 $/t to 176.00 $/t for solid winter HRW wheat in Kansas city

by 5.42 $/t to 207,05 $/t on a firm spring HRS wheat in Minneapolis.

by 8.82 $/t to 189,04 $/t for SRW soft winter-wheat in Chicago

According to forecasts of the met office Australia, summer in the country, especially in the Eastern regions, will be a severe drought, which significantly reduces the yield of crops. Local analysts reduced the estimate of wheat production in the country this year to 18 million tonnes, which is far below the March forecast at 23.9 million tonnes, 38% higher than the figure last year.

The Growth of quotations of American wheat has pushed up the price for black sea wheat of the new harvest. For the week of bid prices for wheat with protein of 12.5% increased by 5-7 USD/t to 195-199 $/t FOB Russian and Ukrainian ports for deliveries in July-August, feed on up to 180-182 $/t FOB.

GrainTrade