Rabobank expects global wheat prices to continue to remain low until September of 2018, and has lowered its estimate for global wheat prices by $18 per ton, or .40 cents per bushel.
Any possible price rally or market volatility will be held back by a large global crop and “exceptional Black Sea prospects”, as Rabobank predicts trading in Chicago to range between $214 per ton and $224 per ton until the next wheat harvest in the northern hemisphere.
Rabobank forecasts Russia will see its second consecutive record wheat crop this season with a harvest of 78 million tons, while the U.S. Department of Agriculture’s World Agricultural Supply and Demand Estimates report expects Russia to see a crop of 77.5 million tons, and IKAR, the Russian Institute for Agricultural Market Studies, raised its wheat harvest estimate for Russia to between 79 million and 82 million tons. Such output could result in record export volumes of 30 million tons from Russia, with lacking infrastructure being the only issue holding back even higher volumes.
Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at firstname.lastname@example.org.