Technical sales and the fixed exchange rate of the US dollar, which makes US wheat more expensive for foreign buyers on the world market, as well as losses in the soybean and corn complex again caused losses in Chicago's wheat futures yesterday. Today at 2:30 p.m., the USDA publishes the weekly export sales. Analysts expect wheat exports to range from 400,000 to 700,000 tons. The U.S. wheat acreage in 2020, according to current USDA estimates, remains almost stable at 45 million acres compared to the previous year (45.2 million acres). Institutional investors sold 4,000 contracts of CBoT SRW wheat yesterday. This morning the eCBoT is moderately firmer.
With comparatively weak sales in a narrow range, the wheat futures in Paris ended the trading day inconsistently. The European cereals trade association Coceral expects the EU common wheat harvest in 2020 to decline from 145.7 million tons in 2019 to 137.9 million tons. Saudi Arabia's tender for the purchase of 715,000 tons of wheat for the delivery period April to June created a positive mood. Saudi Arabia is one of the most important export markets for German wheat. Traders are eagerly watching whether Russia can gain a foothold in the Saudi market.
Source
HANSA Terminhandel
