On Friday, wheat prices rose after Argentina’s Rosario Board of Trade (BCR) cut its production forecast for the 2022-2023 harvest season.
The commodity’s contract for March delivery was trading higher by 0.30% to $760.00 per metric ton on December 06.
This bullish momentum came after BCR trimmed the country’s wheat output by 300,000.00 tons to 11.50 million tons.
Similarly, the US Department of Agriculture reduced Buenos Aires’ output to 12.50 million tons and decreased its export to 7.50 million tons for the market year 2022-2023.
Furthermore, Argentinian farmers were hesitant to sell their crops since they could not fulfill contracts due to the prolonged drought. As a result, it hindered the country’s wheat sales and could even affect its exports.
Additionally, high global supplies were putting more pressure, pushing the commodity’s price.
In particular, France’s agriculture and sea products authority projected its export to increase to 10.30 million tons in next year’s July-June season.
Previously, the agency predicted 10.00 million tons last month due to demand from Morocco and China.
Likewise, analysts forecasted the European Union’s output to soar by 2.50% to 128.70 million next year.
Meanwhile, the USDA reported that traders exported 469,000.00 tons of wheat in the week that ended on December 08.
This amount surpassed experts’ consensus of 150,000.00 to 370,000.00 tons.
India Forecasted Wheat Reserves to Fall
On Thursday, India’s food ministry stated that the country’s wheat reserves would fall but assured that it would return to normal next season.
The agency noted that the grain stocks in the government warehouses for December plunged to their lowest in six years.
In that period, the country’s wheat reserves dropped to 19.00 million tons from 37.85 million a year ago.
However, the ministry said that the storage would be enough to supply the country’s operations until it returned to normal next season.
Particularly, the agency expects 15.90 million tons of wheat in January, higher than the standard requirement of 13.80 million tons.
