Technical sales, losses in Kansas City and Minneapolis wheat as well as the strong exchange rate of the US dollar closed wheat prices in Chicago yesterday with moderate discounts. In addition, the sharp rise in fatalities caused by the corona virus is weighing on global equity markets. With a total of 687,100 tons of US wheat, weekly US export sales were at the upper end of the market expectations of 300,000 - 700,000 tons. Institutional investors sold 4,500 contracts of CBoT SRW wheat yesterday. This morning the eCBoT is almost unchanged.
At Euronext in Paris, the wheat futures were traded in a narrow trading range and closed inconsistently. The weaker euro again this week improves the competitiveness of wheat from the euro area and limited the downside potential yesterday. The strategy firm Strategy Grains reduced its 2020 wheat production forecast in the European Union. The new forecast of 138.6 million tons is now 1.3 million tons below the previous month's estimate of 139.8 million tons.
Source
HANSA Terminhandel
