The latest WASDE report from the United States Department of Agriculture (USDA) reveals the consequences of the trade war between China and the United States (US). The report also shows the impact of the drought in Europe.
The WASDE report shows US soybean exports will be cut by 11%, partly due to the Chinese import tariffs. The USDA also expects closing stocks of soy to be higher. However, the soybean quote on the CBoT in Chicago did not fall beyond the low of $305 per tonne.
Corn consumption is increasing
For corn and wheat, the report is bullish. This is mainly because corn consumption is increasing, according to the WASDE report. As a result, closing stocks fall to 152 million tons. Demand from Russia and Argentina in particular is expected to increase. The corn quotation rose by approximately €2 to €132,50 per tonne.
The wheat price is supported by several factors. This, for example, because the USDA has reduced worldwide wheat production by 8,4 million tons. The wheat quotation on the CBoT in Chicago rose by €5 per tonne to over €177 per tonne.
European harvest
The lowered yield expectations are due to expectations for the Russian and European wheat productionbecause they have been reduced. The harvest in Europe would be 7,5 million tons lower, the French analyst firm Strategy Grains expects.