The nearest wheat futures last week fell to 02.04.18 by 5.14 USD to 163,97 USD. Monday prices began to rise again and to 03.04.18 reached 168,10 USD.
USDA conducted an assessment of the stocks of wheat in the country, which amounted to 1,494 billion bushels, which is 167 million bushels below last year's level. The biggest surprise for the market wheat was to evaluate the acreage, the forecast of which has been upgraded to 47,339 million acres (although the current level of crops continues to be the lowest since the beginning of the 20th century). From this level about 32,708 million acres would be sown with wheat, including 23.2 million acres of hard red wheat, of 5.85 million acres of soft red wheat and 3.64 million acres white winter.
The market declined under the influence of not only crop forecasts and acreage, but low export demand (which is usual for пше6ницы). Export demand for U.S. wheat remains low, which showed sales of the week. Thus, the results of export sales totaled 35,760 thousand tons for old crop wheat (while waiting for the market to 200-400 kt) and 121,825 thousand tons for new crop wheat (while waiting for the market to 50-250 tons). an additional factor in the pressure of the week was the improvement assessment of the wheat harvest. Precipitation, about which we wrote in the last report, have improved the condition of crops of hard winter wheat. In Kansas (the main grain-producing region) evaluation of wheat was increased by 2% compared to the prior week and about 13% of crops were estimated on the "good/excellent". In Colorado rated "good/excellent" has been improved for crops by 8 percentage points In Texas assessment of crops, "good/excellent" was given to 12% of all crops.
Additionally wheat puts pressure on soy market, which weakened in connection with the cooling of trade relations between the US and China. Traders somehow react to this active sales of wheat further reduced.
The market for wheat. At the end of the week to 02.04.18 the nearest wheat futures rose by 2.21 USD to 203,52 USD. By 3 April futures reached 203,98 USD. Last week the European wheat felt more confident than American. Even a strong Euro is not periodically created significant obstacles to a strengthening market. However, it is recognized that European wheat is still struggling with sales. If American wheat pressures last week was enough, the European grain supported strike W/d in France and the relative decline in the domestic supply of grain in comparison with the existing traders demand.
The corn market in the reporting week increased by 3.94 USD to 152.45 USD. Export sales of corn amounted to 1,353 million tonnes for the week, which was within market expectations (of 1.2-1.5 million tonnes). The main buyer of corn was South Korea, which bought about 623,1 thousand tons.
Translated by service "Yandex.Translation"