CBOT wheat and corn prices fell by 3-5% last week

19.06.2018

WHEAT. During June 07-14, CBOT wheat prices fell by 4.8%. The US wheat export spot prices (SRW) for July delivery lost USD 9/MT, while French wheat lost USD 5/MT, reports UkrAgroConsult.

A number of factors pressured the futures:

- publication of June USDA WASDE report;

- winter wheat harvesting and good spring wheat conditions;

- strengthening of the US dollar.

USDA experts raised the world's wheat ending stocks estimates in the current season (+1.91 MMT) and in the new season (+1.83 MMT). Given an improvement of winter wheat conditions in the USA and good spring wheat conditions, experts of the USDA raised the forecast of wheat production in the 2018/19 season to 49.74 MMT (+0.2 MMT compared to May forecast, +2.37 MMT to season 2017/18).

French wheat prices followed CBOT trends, but the depreciation of EUR limited the price reduction. Farmers reported good French wheat conditions.

CORN. Over the reporting period (June 07-14), CBOT corn prices kept falling (-3.51%). Over the week, the US corn export prices lost USD 5/MT (July delivery), Argentinean corn supply prices decreased by USD 4/MT, while Brazilian corn lost USD 6/MT in price.

Good corn conditions in the USA amid favorable weather remained the main bearish driver last week. Moreover, corn futures were pressured by the US dollar strengthening, which may reduce high corn exports from the USA. The tension in trade relations between the USA, NAFTA and the EU appeared to be an additional bearish factor.

In general, June USDA WASDE report was bullish for the market and prevented more substantial price reduction.

Check up prices and enjoy free online charts on UkrAgroConsult’s website. Daily updated commodity exchange prices (CBOT, ASX, BCE, MATIF, WCE, LIFFE) and cash market quotations for wheat, corn, barley, soybean, sunflower and other agricultural commodities in Ukraine, Black Sea region and world are available in section "Prices and Futures".

 

UkrAgroConsult

 

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