Meanwhile, Russia’s agriculture ministry raised forecasts for the country’s 2018 grain crop by 3 million tonnes to 109 million tonnes. Russian Agriculture Minister Dmitry Patrushev and traders of Russian grain will touch upon potential exports at a routine meeting, which further diminished the outlook for USD wheat in the international markets.
“With Russia saying their crop is better than expected, and the dollar being up, it certainly doesn’t help anyone’s thoughts that we’re going to export more of our crop any time soon,” Mark Gold of Top Third Ag Marketing told Reuters.
While the negatives have been piling up, some bargain hunters think the recent selling could be overdone.
“But the latest drop (in wheat prices) is unwarranted as supplies are likely to tighten next year. Overall production in Russia and Australia is lower and global demand for wheat remains strong,” Ole Houe, director of advisory services at brokerage IKON Commodities, told Reuters.
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