Andrey Sizov
12.08.2024
On Friday, U.S. wheat prices rose. The December SRW wheat contract closed at $5.66/bushel ($208/mt; +0.7% compared to Thursday). HRW wheat in Kansas increased to $5.70/bushel ($210/mt; +0.3%). The September Euronext wheat contract remained at €226.50/mt ($247/mt; unchanged). The September U.S. corn contract fell to $3.95/bushel ($156/mt; -0.5%).
European agency Strategie Grains reduced its soft wheat production forecast by 5.8 mmt to 116.5 mmt. The crop is expected to be the lowest since 2018. According to the agency’s analysts, many EU countries are also reporting a decline in grain quality. Bulgaria and Romania are expected to remain among the few countries producing high-quality grains, Strategie Grains noted. The corn production forecast was lowered by 2.0 mmt to 60.0 mmt, and the barley forecast was reduced by 0.7 mmt to 50.6 mmt.
The French Ministry of Agriculture lowered its soft wheat production forecast by 3.4 mmt to 26.3 mmt. Despite the reduction, the ministry’s estimate remains more optimistic compared to private analysts at Argus Media, who on August 6 projected wheat production at 25.2 mmt.
As of August 9, Ukraine had harvested 20.9 mmt of wheat from 4.7 million hectares, covering 97% of the planted area, according to the country’s Ministry of Agrarian Policy.
The share of Argentine wheat crops in normal and excellent condition increased to 90% from 84% the previous week due to timely rains in the country’s eastern agricultural regions, reports the Buenos Aires Grain Exchange. A year earlier, 85% of the crops were rated as being in normal and excellent condition.
