The sowing areas of winter wheat in the US was estimated at 32.6 million acres (13 million hectares). This is the lowest figure since 1909. However, the majority of market participants expected lower numbers compared to sowing under the yield of 2017, the reduction was less than 1%.

Monthly report to USDA on the world market (WASDE) was overall neutral for the quotations for wheat. Assessment of world reserves of 17/18 season has been lowered by 0.4 million tonnes to 268 million tonnes. Forecast of wheat production in Russia was raised to 85 million tonnes from 83 million tons of the Russian exports increased from 33.5 million tonnes to 35 million tonnes (December SovEcon forecast – 35.5 million tons).

Average export prices for Russian wheat (12.5%) rose by $1.5 compared with the end of last year to of $192.5/MT (FOB), supported by the ruble strengthening and growth of the futures exchanges informed.

The ruble has strengthened in January amid high oil prices. On Monday the USD / RUB is trading around 56,5 57,7 against the end of 2017, While maintaining the oil close to current levels, there remains the potential for further strengthening of the Russian currency.

Photo: rusgosnews.com