The weak demand for US wheat on the world market, improved weather conditions in the northern hemisphere and the bearish USDA report caused the wheat futures in Chicago to close yesterday. The USDA raised the forecast for global wheat stocks at the end of the 2020/21 season from 292.78 million tons to 310.12 million tons, significantly higher than the 292.52 million tons anticipated by analysts in advance . The forecast for the US wheat stocks in 2020/21 fell to 909 million bushels. Institutional investors sold 2,000 lots of CBoT SRW wheat yesterday.
This morning the e-CBoT is trading weaker again.
At Euronext in Paris, the wheat futures followed the negative overseas guidelines and closed at discounts. Russia's wheat harvest 2020 is currently estimated by the Russian agricultural consultancy SovEcon at 81.2 million tons. The previous forecast was 84.4 million tons. The reason for the lower estimate is the drought in the south of the country. Traders are eagerly awaiting the outcome of the Algerian wheat bid, the largest buyer of French wheat.On the cash market in Hamburg, premiums for export wheat with 12% protein for delivery in September are 1.00 euros below Paris Dec. 20.
Source
Hansa Terminhandel GmbH
