The wheat futures in Chicago yesterday were the weakest link in the agricultural complex and closed at a loss. Technical sales, positioning before today's USDA report and weak exports weighed on the market. With only 340,310 tons of wheat, the weekly US export inspection was below the market expectations of 400,000 - 650,000 tons. The USDA yesterday lowered the crop ratings for wheat to 53% good-to-excellent (previous week 55%). The USDA will publish its May WASDE report tonight at 6 p.m. German time. Institutional investors sold 5,000 contracts of CBoT SRW wheat yesterday. The e-CBoT is trading further losses this morning. Weak overseas standards and improved harvest prospects in large parts of Europe as a result of the latest rainfall caused wheat prices on Euronext in Paris to close yesterday with slight discounts. EU soft wheat exports 2019/20 reached a volume of 29.15 million tons as of May 10. The value is thus 61% above the previous year's value. For the next two weeks, Russian weather services expect slightly drier weather than normal in the Krasnodar, Stavropol and Rostov regions. Algeria has launched a tender to purchase a nominal 50,000 tons of wheat of optional origin.
Source
Hansa Terminhandel GmbH
