The anticipated production increase affects wheat prices

Since early this week, prices for the European and American wheat exchanges are falling in anticipation of a new supply and demand estimates from the USDA, Grain Trade writes.

Traders expect a yield decrease in Australia to be offset by an increase in production in Russia and the United States, thereby increasing the global wheat production. And it the US that will contribute to the wheat end stocks increase.

The prices are affected by the falling demand for wheat, caused by rising world prices and favourable weather for sowing winter wheat in the main producing countries.

The December futures for American wheat fell by:

• USD 1.65/ton to USD 187.57/ton for SRW in Chicago;
• USD 1.19/ton to USD 189.69/ton for HRW in Kansas City;
• USD 0.64/ton to USD 217.43/ton for HRS in Minneapolis.

Ukraine since the start of MY2018/19, as of October 10, 2018, exported 10.17 million tons of grain, which is 1 million tons less y-o-y.