The apparently sufficient global wheat supply situation, negative guidelines for Kansas City and Minneapolis wheat and position liquidations by fund companies caused wheat prices in Chicago to close yesterday with significant losses. In yesterday's WASDE report, the USDA left the estimate of global wheat stocks in 2019/20 almost unchanged from the previous estimate of 288.03 million tonnes (previous month 288.08). However, analysts anticipated a reduction to 287.44 million tons. By contrast, the estimate of the US wheat stocks has been revised downwards and is now at 940 million bushels (previous month 965 million bushels; analysts estimate 954 million bushels). Institutional investors yesterday sold 10,000 contracts of CBoT SRW wheat. The eCBoT is trading somewhat weaker at the moment.
At Euronext in Paris, the wheat futures followed the negative overseas guidelines and relented on all dates. Egypt's state grain purchaser GASC yesterday bought 180,000 tons of wheat of Romanian origin and 180,000 tons of wheat of Russian origin for the delivery period March 21-31. Wheat from France was not offered. Algeria's state-owned grain purchaser OAIC in turn bought 540,000 tons of ground wheat of optional origin.
Source
HANSA Terminhandel
