Conjuncture of the world market of grain and leguminous crops: the cash and futures markets 16.10.17 for 20.10.17 G.

The nearest wheat futures to 20.10.17 the city continued its decline, reaching USD 156,52 (-4,96 USD per week). Wheat continued to decline under pressure from neighboring markets of soybeans and corn. The wheat market was unable to support high rates of export sales. So, at the reporting week were exported 615,432 thousand MT of wheat, which exceeded market expectations (250-450 thousand tons) and 3.5 times exceeded the level of last week. The main buyers were: Mexico (180,0 thousand tons), China (120,0 thousand tons). The wheat market remains oversupplied, now declining under the pressure of strong exports from the major suppliers of wheat to the world market and the strengthening of the dollar and the Euro further limit the growth of futures.

The market for wheat. At the end of the week to 20.10.17 the nearest wheat futures fell 1.44 USD to 190.00 USD. European wheat was experienced in the reporting week the pressure to a few key factors: decrease in Chicago, the overall decline in export prices, the strengthening of the Euro, the slow pace of wheat exports in connection with the more active supplies from Russia to the Egyptian market. European grain, this season was trying to reconquer lost last season's position, but still too many pressures on the market, and farmers are not yet ready to sell grain at such low prices. Meantime, European exports of soft wheat at 5.7 million tonnes, or 31% below last year's level.

Meanwhile, the Euro strengthened and the sources to reduce the price of European exporters no. Despite the high price, European quality of grain is quite high. So, about 91% of the soft wheat crop has a protein content of more than 11.5% even in regions with a high yield. Good quality seed and favourable overall weather conditions allowed to achieve the average natural weight of the grain of 77.2 kg/HL, and 74% of the crop has test weights of over 76 kg/HL.

From the harvest of 2017. 26 million tons of wheat is classified as "Super" and "Premium" with a protein content over 11%, natural weight about 76 kg/HL and the number drops by more than 220 seconds for Hagberg. This grain, experts say FranceAgrimer, satisfies the requirements of processors of French and foreign buyers.

The corn market for the reporting week fell after the soy and wheat. Thus, the decrease of the nearest futures 3,25 USD to 135,62 USD. Export sales of the week amounted to 1,255 million tons, surpassing most market expectations. However, it is, as in the case of wheat, is not supported by the market.