Andrey Sizov
13.08.2024
On Monday, wheat prices declined. The December SRW wheat contract closed at $5.60/bushel ($206/mt; -1.1% compared to Friday). HRW wheat in Kansas decreased to $5.63/bushel ($207/mt; -1.2%). The September Euronext wheat contract closed at €224.50/mt ($245/mt; -0.9%). The September U.S. corn contract increased to $4.01/bushel ($158/mt; -1.6%).
Egypt’s GASC purchased 280,000 mt of wheat in an international tender, significantly lower than the initially planned volume of 3.8 mmt. Of this, 180,000 mt will be supplied from Ukraine at $269/mt (C&F; with 270 days deferred payment), and two 50,000 mt batches will be supplied from Bulgaria at $259/mt and $262/mt (C&F; 270 days), respectively.
The new WASDE report from the USDA was close to the previous report and market expectations. U.S. wheat ending stocks were revised down to 22.5 mmt (-0.8 mmt from the previous report; -1.0 mmt from the market estimate); corn ending stocks were pegged at 52.7 mmt (-0.6 mmt; -0.5 mmt). Global wheat stocks were lowered to 256.6 mmt (-0.6 mmt from the previous month; -0.3 mmt from the market estimate); corn stocks were revised down to 310.2 mmt (-1.5 mmt; -0.8 mmt).
The corn production estimate for Russia in the new WASDE was reduced by 0.9 mmt to 14.1 mmt. The wheat production estimate remained unchanged at 83.0 mmt.
The USDA reported that exporters sold 165,000 mt of wheat to unknown destinations.
U.S. wheat sales last week exceeded market expectations, according to USDA data. For the week ending August 8, 0.65 mmt were shipped from the U.S., compared to the market estimate of 0.30-0.53 mmt.
The share of U.S. corn crops in good and excellent condition remained at 67%, unchanged from the previous week and 8 percentage points higher than the same period last year.
APK-Inform raised its forecast for Ukrainian grain production in 2024/25 by 1.2 mmt to 55.0 mmt. The forecast for Ukrainian grain exports was increased by 2.6 mmt to 38.8 mmt.
