CBOT: July USDA report cooled down wheat prices

18.07.2017

During July 6-13, CBOT wheat prices turned downwards after five weeks of growth (-4.55%).

The July USDA WASDE report, in which the estimate of world wheat production was reduced by only 1.7 MMT to 737.83 MMT (754.3 MMT in 2016/17 season), was bearish for the CBOT wheat futures. The projection of the world wheat ending stocks was cut by 0.59 MMT to 260.6 MMT. The market expected a more significant reduction.

The further price decrease was limited by the information on spring wheat conditions worsening in the USA. According to the USDA, the spring wheat production will be the lowest since 2002. The share of crops in good and excellent conditions was 35%, which was significantly lower than in 2016 – 70%. Market experts expect a resumption of the futures growth in Chicago and Minneapolis, despite rain forecasts in the northern Plains. The air temperature remained abnormally high in North Dakota – the largest state producing spring wheat.

 

UkrAgroConsult

Readers choice: TOP-5 articles of the month by UkrAgroConsult