The wheat quotes in Chicago are currently trading modestly on the last day of this trading week. However, they lost 2% this week and even 8.5% in the last three weeks. Rainfall in the US plains, good conditions in the Black Sea region and the overall comfortable global supply situation pushed prices down in recent days. The IGC expects sinking cereal stocks in 2018/19. A decline in global grain production to 2.087 billion tonnes (-0.2%) and an increase in global consumption to 2.13 billion tonnes (+ 1.1%) are expected. The estimate of wheat production in 2018/19 is 741 million tons. That would be a drop of 17 million tons. The largest share of it is therefore Russia. There they expect a production volume of 74.5 million tons versus 84.9 million tons. Institutional investors yesterday bought 2,000 lots of CBoT SRW wheat.
