Wheat price to provisional low

Canadian wheat production has been reduced by 1,9 million tonnes to 26,5 million tonnes. This is mainly due to the drought in the prairie regions. However, less wheat from Canada will not prevent global wheat ending stocks from increasing again.

The Russians are heading for a production record of 77,5 million tons, approximately 5 million tons more than last year. On balance, global production increases by 6 million tons to 743,2 million tons. This will result in ending stocks being approximately 4 million tons higher, at 264 million tons.  

Wheat in red
The wheat price on the Matif in Paris opened €11 lower on Friday morning, August 1,25, at €160,25 per tonne. This is the lowest level of 2017 so far. In the US, the wheat price on the CBoT also closed 4% lower on Thursday, ending at $161,86 per tonne. These decreases turned out to be the result of the measurements from the WASDE report. In the United States, the wheat price has been on a downward spiral since July, but was still below $150 per tonne at the end of April. 

Also soy lower
The closing stocks of soy have also increased, by more than 4 million tons to 97.7 million tons. This increase is a result of broader harvest forecasts in Argentina and Brazil. The United States also increased slightly. Argentina is a heavyweight with an adjusted harvest forecast of 2,5 million tons. The August contract on the CBoT took a big hit and closed 10% lower at $3,3 per tonne on Thursday, August 341,99.

Stocks depress corn
The corn price also had to drop on Thursday, August 10. A decline of 4% left the price at $140,64 per tonne. Here too, ample ending stocks put pressure on prices. Moreover, the closing stocks of maize hardly increased. However, the more than 200 million tons of final stocks of corn do fall under the heading 'large'.