Conjuncture of the world market of grain and leguminous crops: the cash and futures markets 20.11.17 for 24.11.17 G.

The nearest wheat futures last week decreased by 4.22 USD to 152,76 USD. Export sales of wheat for the reporting week amounted to 199,845 thousand tonnes (16.11.17), which was a drop in comparison with the results of last week (-59,2% compared to the prior week and by 71.9% lower than the same date last year). Naturally, these results of export sales has had a significant pressure on the prices. It should be noted that quotations rose slightly only on Monday. The main reason for this growth was the U.S. dollar, and speculative sales traders to close short positions (it was near Thanksgiving). It is also worth noting the wave of negative news about the environmental situation in Russia, which could impact on exports and as exported from the country of wheat. In General, the wheat for the week fell under pressure from strong dollar, which began to strengthen with the beginning of the week.

The market for wheat. At the end of the week to 24.11.17 the nearest futures contract for wheat strengthened slightly by 1.09 USD to 188,21 USD. European grain during the week have changed after wheat Chicago. However, problems with the pace of exports (which was typical of the American grain) capped gains.

The corn market for the reporting week declined by 0.3 USD to 134,73 USD. Export sales for last week totaled 1.08 mln tonnes (16.11.17) by 13.83% above the level last week, but lower by 34.93% compared to the same week last year. The corn market has changed in a week not as much as the neighboring market of soybeans or wheat. One of the prospects of the market culture is an expected increase in the production of pork on an industrial basis in China.. According to Reuters, there are at least eight companies that intend to build manufacturing facilities in the North-Eastern part of the country, which produces about 17 million market hogs. It is assumed that if the projects come to life, this part of the country is grown about 20% of Chinese production pigs or about 120 million pigs per year (equivalent to the volume of pig slaughter in the United States per year). So active increasing the production of pork will naturally spur the markets forage crops with high protein content. Mainly it will affect soybean and its neighboring corn market. In conjunction with an ongoing program of increasing the production and use of ethanol in the country (which is already in full swing) China may again become a significant player in the global corn market in the not too distant future.