News

The US Department of Agriculture has reduced its forecast for India wheat production in 2017-18 marketing year (Apr-Mar) to 96.0 million tonne. In the previous forecast released in May, the US agency had projected wheat production of 97 million tonne in India. Production is still seen at a record high and over 10% higher from 87 million tonne a year ago. The government has estimated India wheat output in the 2016-17 crop year ending June to a record 97.4 million tonne. Despite the record crop and a custom duty of 10%, the department sees India wheat imports in 2017-18 at 4.0 million tonne.

USDA weekly crop progress report is expected to show lower condition ratings for spring wheat crops. Spring wheat was expected to be rated 53 percent in good to excellent condition, off 2 percentage points from last week as hot temperatures and limited rainfall in the central United States stressed developing corn and wheat plants. The winter wheat harvest likely advanced to 22 percent done, up from 10 percent a week ago.

Saudi Arabia main state wheat buying agency the Saudi Grains Organization bought 805,000 tonnes of hard wheat in an international tender. The purchase comprises 13 consignments to be shipped to the ports of Jeddah, Dammam and Jazan. Arrival dates range from August 1 to October 20. The purchase was made at an average price of $216.66 a tonne c&f.

European wheat prices fell following a sharp drop in U.S. prices on abundant global supplies and improved weather forecasts, and pressured by low export demand. December milling wheat on Paris-based Euronext, was down 0.7 percent at 172.00 euros a tonne.

A group of Israeli private buyers issued international tenders to purchase up to 30,000 tonnes of feed wheat and 20,000 tonnes of feed barley all of optional origins. Tenders close on June 13.

Wheat futures settled with losses of 1 to 4 cents in the KC and CBT contracts, as MPLS was up mostly a penny to 2 1/2 cent in the front months. The Commitment of Traders report had managed money lowering last week net short position in Chicago wheat futures and options by 7,624 contracts, to 106,136 contracts. They added 4,510 contracts in the MPLS wheat future and options contracts to a net long position of 9,486 contracts as of June 6. All wheat production for 2017 was hiked 4 mbu at 1.824 bbu over May crop production report. Winter wheat production saw a 4 mbu shift up to 1.250 bbu, as HRW was at 743 mbu up 6 mbu, with SRW at 298 mbu. US ending stocks for 2016/17 were at 1.161 bbu, showing a 2 mbu shift from May on larger imports, as 2017/18 stocks rose 10 mbu in this month’s report to 924 mbu. World ending stocks for 2016/17 were updated to 256.43 MMT, with 2017/18 stocks up 2.9 MMT to 261.19 MMT.

Egypt purchased 360 KMT of milling wheat from Russia and Romania for shipment during July 10–20, 2017 at an average price of USD 205.51/MT C&F. The price in the previous tender equaled USD 202.61/MT C&F. In the previous tender, on May 31, 2017, Egypt took 180 KMT of milling wheat from Russia and Romania for shipment during July 1–10, 2017.