Surprising acreage - wheat negative

For wheat, the signs shone deep red yesterday. The November WASDE depressed sentiment on both stock exchanges and turned out differently than many market participants had previously expected. The market was particularly surprised by the strong growth in acreage. In the USA alone, the cultivation area for winter wheat is said to have increased by 2.2%. Closing stocks in the US were increased by a significant 5 percent compared to December WASDE, while consumption and US exports were reduced at the same time. For Russia, too, lower exports are expected in the current season due to the export quota. For the EU, on the other hand, the USDA raised its export forecast by 0.5 million tons, which means that the total export volume in the current financial year is expected to be 37.5 million tons. In the morning, however, France's agricultural authority had reduced its forecast for French exports by 2.2 percent and raised domestic final stocks by 2.9 percent. The prices on the cash markets in Germany remain unchanged.