The prices of CBoT wheat futures have been rising for three trading days, reaching their highest level in a week this morning. A reduction in the harvest estimate for Russia causes prices to rise.
The offer would be smaller; but it is still uncertain how demand will develop, brokers in Far East Asia note.
In many parts of Europe it has rained in the last two weeks and one hopes for more precipitation but in the Black Sea region it remains too dry. The Russian Ministry of Agriculture reports that grain yields are below expectations in several southern regions of the country. Experts in the agency assume that the Russian grain harvest in 2020 will amount to around 120 million tons, which would be less than the harvest in 2019. In the previous estimate, 125.3 million tons were assumed.
Russia and Ukraine, two of the most important wheat exporters in the world, have been complaining about drought since the beginning of April. In May it rained in many parts of the region, but not enough and not everywhere.
The US winter wheat field holdings in the US received a rating this week that was worse than expected, as was the stock market pricesupport. 
Source
Hansa Terminhandel GmbH
