The nearest wheat futures to 13.10.17 g continued its decline, reaching USD 161,48 (-1,47 USD per week). The main influence on the market had forecast USDA wheat in October. In October, the forecast of wheat production in the world increased by 6.3 million tons from 744,849 million tons in September to 751,19 million tonnes in October. The increase in forecast estimates of the wheat crop due to increased harvest in many producing countries culture in the world (Canada, Argentina, etc.). The increase of the demand on the already oversaturated world wheat market will be further pressure on prices. Such a significant adjustment of production in 2017/18 MG led to an increase in forecast estimates of ending stocks of wheat in the world (+4,996 million tonnes to 268,134 million tons). In addition to the confirmation of the insufficient export demand indicators weekly export sales were not high enough. So, export sales of the week amounted to 175,0 thousand tonnes (05.10.17), although market expectations amounted to 300-500 thousand tons.
In the forecast balance sheet for wheat in October were increased predictive assessment of production 6,336 million cu 744,849 million tonnes to 751,185 million tons of the biggest adjustment of wheat production touched again Russia (+1.0 million tonnes of 81.0 million tonnes to 82,0 million tons) and EU (+2,169 million tonnes 148,870 million tonnes to 151,039 million tons), India (+2,38 million tonnes to 96.0 million tons to 98,380 MT), Canada (+0.5 million tonnes from 26.5 million tonnes to 27,0 million tons).
For the U.S. forecast production and consumption of wheat was not as sharp, and only if the reduction in forecast estimates of domestic consumption of wheat at 816 THD. MT, the estimate for ending stocks was increased by 752 thousand tons to 26 tons 134 Thus, a material adjustment to the forecast for the United States were not made.
The market for wheat. For the week 13.10.17 to the nearest wheat futures fell 2.34 USD to 191,44 USD. The main pressure on the quotes provided adjacent market of Chicago with his fall. Despite the relative strengthening in the course of a week (due to the weakening Euro), at the end of Friday quotes still decreased. Meanwhile, for European traders the key problem, as for many other countries, is to increase exports, which are sometimes complicated by a strong Euro.
The corn market in the reporting week has been strengthened. Thus, the growth of the nearest futures 1.09 USD to of 138.87 USD. Export sales for the week have been high enough to support the market and help quotes to grow. Thus, sales amounted to 1,593 million tonnes (the Largest buyer was Mexico, which acquired approximately 1.02 million tonnes).
Translated by service "Yandex.Translation"