Wheat Monthly Research Report

Transcription

1 Wheat Monthly Research Report Contents Wheat Market Dynamics AW Cereal Index Wheat Quarterly Balance Sheet Supply Demand & Domestic Market Highlights Acreage and Procurement Wheat Price Trend Export & Import Monthly Stock & Inflation Monthly Average Price Spot Prices Monthly Arrival & Technical Analysis International Wheat Market Summary Global Policy Developments & Spot/Forward Prices IGC & USDA Balance Sheet CBOT & FoB Quotes International Outlook

2 Market Dynamics: Price Trend: All India average monthly prices for wheat decreased by 0.92 percent from Rs (in February) to Rs per qtl in March Better crop prospects for have weakened inner tone in the market. Average price (March) is higher by percent compared to price (Rs per qtl.) registered in March Higher import volume would restrict demand from south Indian millers. Government has imposed import duty of 10 percent to restrict flow of imports. Production Estimate: Agriwatch has given its preliminary production estimate of 94.7 MMT for Carryout is expected to be around MMT. Availability would be MMT, higher compared to last year on account of increased production. Consumption is likely to be around 94 MMT. Directorate of Economics & Statistics has maintained production figure at MMT in fourth Adv estimate released on 2 nd Aug-2016 against target of for the year. Final figure is likely to be revised down as per market expectation. Export-: At export front prevailing market conditions are not in favour of Indian exporters due to huge price gap. The difference is around $80 per tonne from Black Sea Region. Russia/Ukraine is offering wheat at $183.5/185 per tonne on FoB basis while Indian FoB at Kandla port comes to $ per tonne. India exported 7847 tonne wheat in December at an average FoB of $ per tonne. Total export in current MY till December-2016 was registered around tonne from 1 st April. For current MY till October average FoB comes to $ per tonne. There is no hope for any recovery at export front this year. Import: At import front, government has imposed 10 percent import duty in order to reduce flow of imports and provide domestic crop favourable grounds. In December India imported 5.66 lakh tonne wheat at an average CiF of $ per tonne compared to 5.54 lakh tonnes in the month of November. Import will continue but volume is likely to decrease. India is expected to import 2 to 3 million tonnes in Marketing year. FoB/CiF Quotes: Indian FoB quote is hovering around $ per tonne. Against it Russia, Ukraine, France, US and Australia are offering wheat at $183.5, $185, $161.5, $182.4 and $ per tonne respectively. The latest consignments from Australia landed at Tuticorin (28901 T), Cochin port (1000 T) and Mangalore (4000 T) at CiF of $239.42, $243.6 and $ per tonne respectively. Around 1500 tonne and tonne of wheat have been imported from France and Ukraine respectively. Supply-Demand: Supply side for FAQ wheat is likely to be normal as arrivals have started in central and North India. As compared to last year arrivals are higher and are likely to increase further in coming weeks. Import duty levied by government will slightly increase demand by south Indian millers. Furthermore government will also procure intensively to meet their increased target and replenish their stocks. Procurement Target: Government has fixed wheat procurement target at 33MMT for Of the total target around 11.5 MMT will be procured from Punjab, 8.5 MMT from Madhya Pradesh, 7.5 MMT from Haryana, 3MMT from Uttar Pradesh and 1.7 MMT from Rajasthan. Outlook & Recommendation: Wheat cash market is expected to trade range bound to slightly weak in the short to medium term. Trade Call: Stake holders should trade taking care of lower and upper price band of Rs 1565 & 1840 respectively. Weather Update: India has suffered from two back to back years of low rainfall before receiving an average rainfall in This year El Nino, a warming of ocean surface temperatures in eastern and central pacific is likely to occur and India is likely to be unharmed as it is likely to occur in the later part of four month monsoon season in India. However due to low rainfall requisite soil moisture may not be available, which may lead to delay in sowing of wheat for next season.

3 AW Cereals Index: The Agriwatch Agri Commodities Index rose 0.74% to during the week ended March 25, 2017 from during the previous week led by higher cereals and pulses. The base for the Index and all sub-indices is 2014 (= 100). Seven of the 9 commodity group sub-indices and 15 of the 29 individual commodity sub-indices that constitute the main Index gained during the week. Spices and Sweeteners were the only declining groups this week. The commodity group sub-index values and their weekly changes are as follows: Cereals: (+1.16%), Pulses: (+3.20%), Vegetables: (+0.41%), Edible Oils: (+0.60%), Oilseeds: (+0.80%), Spices: (- 3.29%), Sweeteners: (-0.44%), Fibres: (+1.72%) and Other Non-Food Articles: (+0.08%). "Agriwatch has recently launched its AW Agri Commodity Indices to enable organizations access independent Indices to track and use to benchmark their purchases and sales. The Indices are based on the daily prices in the key benchmark markets for each commodity that AW has been covering for the past decade. The indices include an Aggregate Index, Category Indices and individual commodity indices. The weekly indices are free to access on our website www agriwatch.com. The daily indices are available on subscription. Please contact for more details." India s Wheat Quarterly Balance Sheet For : Wheat MY Runs From April To Apr-Jun July-Sep Oct-Dec Jan-Mar March Carry in Production Imports Total Availability (A+B+C) Consumption Exports Total Usage (E+F) Carry out (D-G) Av Monthly Consumption Stock to Month Use Stock to Consumption Ratio *Agriwatch Preliminary Estimate

4 Supply-Demand Highlights: Wheat production in India for crop year (to be marketed in ) is expected to be around 94.7 MMT given normal condition in February- March, Carryout is expected to be around MMT. Availability would be MMT, higher compared to last year on account of increased production. Wheat stock in government godowns has fallen to a five-year low of million tonnes as on 1st March, which is lower than the buffer-cum-strategic reserve norm of 12.8 million tonnes. This insecure position is however offset by ample global supplies and expectations of good domestic crop under the normal conditions. This season will start with a carryout of 8.98 MMT. Higher production this year will increase carry out for to MMT At export front, there is not much scope for Indian wheat exporters due to cheaper price in Russia, Australia, US, Argentina and France. Russia, Argentina and Ukraine are offering wheat at $74-81 per tonne lower than India. So, there is no export window available for bulk export from India. India would be able to export hardly 1MMT wheat in in neighbouring countries. Import window is still open and it may touch 5MMT this year. Domestic Market Highlights: Government has imposed 10 percent import duty on wheat in order to restrict imports and provide favourable grounds for domestic crops. In the current MY , more than 5 MMT of wheat has already been imported. India is expecting a good crop this year and government has set a procurement target of 33 MMT higher by 10% compared to last year. Currently Australian and Ukrainian FoB are coming around $180/tonne and $185/tonne. According to latest update, area sown until 03 rd February'17 is lakh hectares compared to lakh hectares in the previous Rabi season. Among various states the area is down in Jammu & Kashmir and Karnataka, whereas Punjab, Haryana and Uttar Pradesh have seen an increase in area compared to last year for the same date. The normal area is lakh hectares. Area is expected to be higher this year as government has increased MSP of wheat which has motivated farmers to sow more area. The government has decided to increase the minimum support price of wheat by Rs 100 per quintal to Rs 1625 per quintal for The hike is around 6.6 percent higher compared to last year and 5.2 percent higher compared to Wheat import continues with same pace as global market remains under pressure and supply exceeds led by bumper production prospects in Australia, US and Canada. In the week(21 st -26 th ), India imported around tonne wheat from Australia, Ukraine and France till 26th Nov-2016 at an average CIF of $ per tonne. Around tonne has been imported from Australia at an average CIF of $ per tonne, tonnes of Ukraine wheat at an average CIF of $ per tonne and a small quantity of 1500 tonnes has arrived from France at an average CIF of $ per tonne. Wheat WPI has decreased slightly from in January 17 to in February Monthly wheat inflation has decreased by 1.04 percent in February-17 compared to January-17. As compared to February- 16, wheat WPI is higher by around 8.36% and by 14.89% compared to January-2015.

5 Area Coverage under Wheat Till 03rd February-2017: State Wise Progressive Wheat Sowing Till State Normal area This Year Last Year % Change Assam Bihar Chhattisgarh Gujarat Haryana H.P J&K(J) Manipur Meghalaya Jharkhand Karnataka M.P Maharashtra Punjab Tamil Nadu Telengana Tripura Rajasthan Uttar Pradesh Uttarakhand West Bengal Others All India Wheat Procurement Status Till 28 th June-2016 (Source :FCI) State Total Procurement In Marketing Season Progressive Procurement As on (Fig In Lakh Tonne) 16(April To March) In Marketing Season In Marketing Season % Ch Over Previous Year Punjab Haryana Gujarat Uttar Pradesh MP Rajasthan Others All India

6 (Rs/Qtl) Assam Chattisgarh Gujarat Haryana Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra NCT of Delhi Orissa Punjab Rajasthan Telangana Uttar Pradesh Uttrakhand West Bengal Monthly Average Price Comparison: All India average monthly prices for wheat decreased by 0.92 percent from Rs (in February) to Rs per qtl in March Average prices moved down in all States except Orissa, Jharkhand, Karnataka and Madhya Pradesh. Prices are likely to stay steady to slightly weak as pressure of arrivals will increase in coming weeks from north and central India. As of now arrivals as well as procurement are higher compared to last year. Furthermore government has imposed 10 percent import duty on wheat in order to reduce import flow and provide favourable grounds for domestic crop. If the government wants to completely restricts imports it should employ 25 percent import duty Statewise Wheat Average Price Trend In March- 2017(Rs/Qtl.) Prices Mar 2017 Prices Mar 2017 Prices Mar 2017 Prices Mar 2016 Mill Delivery Wheat Weekly Average Price Movement at key Spot Market: Wheat average mill delivery prices traded steady to slightly weak in Indore, Delhi, Ahmedabad during 17 th 23 rd March and slightly firm in Kota. Prices are expected to remain steady to slightly weak. Arrivals have started in Madhya Pradesh, Rajasthan, Gujarat, Uttar Pradesh, Punjab and Haryana. Arrivals are higher compared to last year during the same period owing to good crop. As of now government is procuring in Gujarat, Rajasthan, Madhya Pradesh, Punjab and Haryana Mill Delivery Wheat Weekly Average Price Delhi Indore Ahmedabad Kota 03rd - 09th Mar 10th - 16th Mar 17th - 23rd Mar 24th - 30th Mar Wheat Delhi Average Monthly Price: Wheat spot market Delhi (Narela) average price decreased from Rs in February-17 to Rs per quintal in March The prices are weak by 5.79 percent compared to last month and firm by percent compared to last year for the same month. Cash market at Delhi (Narela) has become slightly weak because of arrival of new crop in north India Delhi (Narela)Spot Market Monthly Average Prices

7 Wheat Exports: According to latest update, India exported around 7847 tonne wheat in the month of December-2016 at an average FoB price of $ per tonne. It is around 4.49 thousand tonnes higher compared to exported quantity (3.35 thousand tonne) in November Overall condition for Indian wheat export is not favourable and export volume would remain at negligible level in December too. Export volume would not increase much as prices in domestic market still rule higher and other exporting countries are offering wheat at cheaper price ($64 to $76 per tonne lower from domestic price) with assured quality and delivery schedule. Huge gap between prices continue to affect wheat export from India. Source: DGCIS, *Provisional data from IBIS Yearly/Monthly Quantity Wheat Export(Lakh T) Average FOB Quotes India(USD/MT) CBOT Average Quotes (USD/MT) Sept 11- Mar Apr 12 - Mar Apr 13 - Mar Apr-14-Mar Apr-15-Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 17-Feb 17-Mar Total ("000"T) Wheat Import : India imported around 5.02 lakh tonne wheat during last MY. This year import volume may increase to 4 MMT if prices in domestic market continue to get firmer. In the month of December India imported around 5.66 lakh tonne wheat from Russia, Bulgaria, Ukraine and Australia compared to 5.54 lakh tonnes in November-16. Yearly average CiF comes to $ per tonne for This year CiF average quote comes to per tonne. FoB quote in Black Sea region has increased to $185.5 and may touch $190 per tonne by April end. Government may impose around 25 percent import duty to restrict flow of imports and provide favourable grounds for upcoming domestic crop. Source: DGCIS, *Provisional data from IBIS April (MY ) Wheat Import(In Thousand Tonne) Average CIF Quotes India(USD/MT) CBOT Average Quotes (USD/MT) Apr-15 To Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 17-Feb 17-Mar Total

8 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Wheat Stocks with the Government as on 1st of Every Month Wheat stock in government s ware houses on was registered at lakh tonne. It is lower by % from February Central pool stock has been declining from 2013 owing to export and lower production/procurement. Wheat ending stock is likely to be around 85 lakh tonnes as on 15 th March Available stock in central pool is below the revised stocking norms as of now. Government has increased its procurement target to 33 MMT from last year s 30 MMT. Government is procuring intensively this marketing year to replenish its stock and as on 31 st March-2017 procurement is around 7 lakh tonnes. Wheat Inflation: Wheat Stock with government as on (Lakh tonnes) Month/Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Wheat WPI has decreased slightly from in January 17 to in February Monthly wheat inflation has decreased by 1.04 percent in February-17 compared to January-17. As compared to February-16, wheat WPI is higher by around 8.36% and by 14.89% compared to January Weight: , base year = Wheat WPI

9 Monthly Average Prices At Various Market(Rs/Quintal) Delhi Indore Kota Rajkot Chennai 14-Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Source: Agriwatch

10 Monthly Price Comparison of Spot Markets Centre Market Variety Delhi Gujarat M.P. Rajasthan U.P. Punjab Haryana Tamil Nadu Bihar Spot Market Price: Prices (Rs/Qtl) Today Yesterday Week Ago Month Ago Year Ago 1-Apr Mar Mar-17 1-Mar-17 1-Apr-16 Lawrence Road Mill Delivery Narella Mill Quality Loose NR NA Nazafgarh Mill Quality Loose Rajkot Mill Delivery Closed Closed Ahmedabad Mill Delivery Surat Mill Quality Loose Dhrol Mill Delivery NR NR NR 1885 NA Indore Mill Quality Loose Bhopal Mill Delivery Closed Closed NA Kota Mill Quality Loose Mill Delivery Kanpur Mill Delivery Mathura Mill Quality Loose Kosi Mill Quality Loose Hathras Mill Quality Loose NR Aligarh Mill Quality Loose Khanna Mill Quality Loose Ludhiana (Jagraon) Mill Delivery NA NA NA NA NA Sirsa Mill Delivery loose Hodal Mill Delivery Bhiwani Mill Quality Loose Karnal Mill Quality Loose NR NA NA Panipat Mill Quality Loose NA NA NA NA 1525 Chennai Mill Quality Madurai Mill Quality Coimbatore Mill Quality Khagariya Mill Delivery Muzaffarpur Mill Delivery NA

11 (in Tonne) Monthly Arrivals at Delhi Arrivals in Delhi region (Narela and Najafgarh) increased in March-2017, from tonnes in February to tonnes in March Currently wheat is being traded at Rs 1770 per qtl. Domestic Outlook: Wheat cash market is expected to trade steady to slightly weak in April-2017 given the normal condition Monthly Arrivals at Delhi (Narella and Najafgarh) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Wheat Technical Analysis: Wheat Technical Outlook C1 Continuous Chart Technical Commentary: Rise in price and open interest indicates long buildup. RSI is moving in neutral region. Prices closed above 9 and 18 days EMAs. Candlesticks are denoting range bound to form movement. Strategy: Buy S1 S2 PCP R1 R2 Wheat NCDEX C Monthly Trade Call Call Entry T1 T2 SL Wheat NCDEX C1 Buy * Do not carry-forward the position next month.

12 International Market Dynamics Major feed mill group of South Korea has purchased around tonnes of feed wheat in two consignments that can be sourced from optional origins. The first consignment consist of tonnes purchased at $ per tonne C&F to be delivered between July 15 to August 05 and second consignment of tonnes at $187.9 per tonne C&F be delivered between August Algeria s state grain agency OAIC has bought tonnes of durum wheat in a tender closed on Tuesday for shipment in May at around $250 to $253 per tonne cost and freight. The purchase is likely to be Canadian western amber durum or U.S. durum Jordan has bought tonnes of hard milling wheat at $202 cost and freight for delivery in second half of September. The tender closed on Wednesday and wheat can be sourced from optional origin. Recently Jordan has purchased tonnes on March 22, tonnes on March 7 and tonnes on February 21. As per latest update, china has sold tonnes of wheat for average price of 2506 yuan ($364.03) per tonne at an auction of state reserves on Tuesday. The quantity sold represents around percent of tonnes of wheat available at auction. Russian milling wheat prices are facing pressure from higher inventories and good condition of winter wheat that is to be harvested in coming months. Export price for Russian milling wheat with 12.5% protein decreased by $1 per tonne to FoB $ per tonne Novorossiysk port for April Delivery. As per latest update, Japan s ministry of agriculture bought MMT of food quality wheat from United States and Australia. Around MMT has been bought from United States with minimum protein content of 14 percent to be loaded between April 21-May 20 and MMT of standard white wheat has been bought from west Australia to be loaded between May 1- May 31. GASC has purchased tonnes of wheat through tender after abolishing its zero-tolerance policy towards ergot. Of the total quantity tonnes is of Russian origin, tonnes is of Ukrainian origin, tonnes is of Romanian origin and tonnes is of French origin. Cerealcom bought Romanian wheat at FoB $ per tonne, AOS bought Russian wheat at FoB $ per tonne, Daewoo bought Russian wheat at FoB $ per tonne and Ukrainian wheat at $199.5 per tonne respectively, Alegrow bought Russian wheat at FoB $198.7 per tonne, Lecureur bought French wheat at FoB $199 per tonne, Cargill bought Romanian and French wheat at FoB $200.5 per tonne and FoB $197 per tonne respectively, Glencore bought Romanian wheat at FoB $ per tonne As per latest update, Indonesia is expected to import higher volume compared to last year. In 2016, Indonesia imported around 8.3 MMT of wheat. This year Indonesia is expected to import 8.7 MMT to 9 MMT of food grade wheat. Australia is the top supplier of wheat to Indonesia and as it has bumper crop of around 34.5 MMT this year, Indonesia can get good quality wheat at competitive price. Argentinean government has announced that it has harvested a record 18.3 MMT of wheat for season, which is higher by 62 percent compared to last year. The crops loss in some of the areas in Argentina due to bad weather was compensated by increase in output other wheat producing areas. Around 93 percent of French wheat is in good or excellent condition as of February 20th, which is slightly higher compared to last week. Last year, France harvested one of its worst wheat crops on account of heavy rainfall in late May to mid June as well as low sunshine during the crop s growth period.

13 Global Policy Developments India: On 28 th March 2017, Government has imposed 10 percent import duty on wheat in order to restrict imports and provide favourable grounds for domestic crops. In the current MY , more than 5 MMT of wheat has already been imported. India is expecting a good crop this year and government has set a procurement target of 33 MMT higher by 10% compared to last year. Brazil: The Bank of Brazil will provide financial support to wheat producers from the Southern provinces, which incurred debts from the 2016/2017 wheat crop. The loan repayment is due within six months and the interest rate is set at 8.75 percent per annum, similar to the rural credit scheme. Meanwhile, farmers who have payments due in the period January-April may apply for the Producer Price Guarantee Fund i.e. the former Federal Government Loan (EGF) European Union: As part of the Economic Partnership Agreement between the European Union and the Southern African Development Community (SADC), duty-free tariff quota access was granted for tonnes of European wheat into members of the Southern African Customs Union (SACU). Tariff quota imports started on 1 February will run until 30 November 2017, and are being channeled through designated South African and Namibian ports of entry. Mexico: On 16 February, the Mexican Secretary of Agriculture announced a preliminary agreement with the Russian Federation for the resumption of meat deliveries in exchange of wheat imports from Mexico. The head of the Mexican sanitary service indicated that the supply of meat would be of around to million tonnes. Mexican meat exports were restricted by the Russian sanitary agency since Spot Prices Date Odessa, FOB($/tonnes) Milling wheat 12,5% Milling wheat 11,5% Feed wheat Novorossiysk, FOB($/tonnes) Milling wheat 12,5% Milling wheat 11,5% Feed wheat Forward Prices for 2017 Crop Origin Commodity Delivery period Price (USD/MT) Russia Wheat, 12.5% protein Aug-Oct Ukraine Wheat, 11.5% protein Aug-Sept Ukraine/Russia Feed wheat Aug-Oct

14 IGC Wheat Balance Sheet (Quantity in MMT) 2015/ (Forecast) 2017/2018 (Proj) IGC Forecast( Fig-In MMT) Estimated Production Trade Consumptions Carryover stocks Y-O-Y change Major Export IGC Balance Sheet Highlight: IGC has kept its projection same for wheat at 754 MMT as on 30 th Mar-2017 for crop year According to IGC global wheat production for may touch 754 MMT against 736 MMT forecasts for The difference is around 18 MMT from previous estimate. Higher projection for wheat may pressurize global wheat market at current level and any major recovery from current level is unlikely. Trade projection has been kept same at 169 MMT. It is 3MMT higher from actual of last year. Consumption has been reduced by 1 MMT from 738 MMT to 737 MMT for , up by 18MMT from last year. Carryout has been revised up by 3 MMT since last estimate of 236 MMT for It would ensure ample supply for the global market and continue to affect market sentiment. USDA Global Wheat Balance Sheet: Fig. In Thousand Tonne (As on ) Country Opening Stock Production projected Domestic Consumption Import Export Ending Stock Production Last Year Argentina ,000 6, , ,300 Australia 5,639 35,000 7, ,000 7,329 24,500 Canada 5,171 31,700 10, ,500 6,656 27,594 China 97, , ,000 4, , ,190 EU 13, , ,700 5,500 25,500 9, ,000 India 14,540 87,000 98,140 5, ,500 86,530 Pakistan 3,829 25,300 24, ,754 25,100 Russia 5,601 72,500 39, ,500 11,101 61,044 Ukraine 3,248 26,800 11, ,500 2,273 27,274 U S 26,552 62,859 33,911 3,200 27,500 30,734 56,117 Others 64, , , ,906 24,522 58, ,937 World Total Source: USDA 240, , , , , , ,586

15 CBOT Futures Mar-17 Chart: 1 St Support; nd Support: st Resistant: nd Resistant: ($ per tonne) Market is likely to move from range bound to slightly weak as abundant supplies are available in the market. CBOT reached a seven month high as USDA increased its export forecast and showed less global supplies than expected. CBOT comparison over period of time: CONTRACT MONTH Today Week Ago CBOT Futures Prices:(USD/T) Month Ago 3 Month Ago 6 Month Ago Year Ago % Change over prev. year 30-Mar- 23-Mar- 28-Feb- 30-Sep- 30-Mar- 30-Dec May Jul Sep Dec Mar May Comparative Month on Month FOB quotes: (Fig in USD/MT) All prices are for SRW/milling grade 1st Oct- 16 1st Nov- 16 1st Dec- 16 1st Jan-17 1st Feb- 17 1st Mar- 17 1st April- 17 USA France Australia Russia India

16 12-May May May-16 2-Jun-16 9-Jun Jun Jun Jun-16 7-Jul Jul Jul Jul-16 4-Aug Aug Aug Aug-16 1-Sep-16 8-Sep Sep Sep Sep-16 6-Oct Oct Oct Oct-16 3-Nov Nov Nov Nov-16 1-Dec-16 8-Dec Dec Dec Dec-16 5-Jan Jan Jan Jan-17 2-Feb-17 9-Feb Feb Feb-17 2-Mar-17 9-Mar Mar Mar Mar-17 ($/Tonne) Global Indicative FoB Quotes: Indian FoB quote is based on local price. There is no export in bulk volume currently. Indian FoB quote is hovering between $ per tonne. US and Russian quotes are hovering in the range of $ and $184.7 per tonne respectively. Wheat prices in international markets witnessed steady to slightly weak tone in the last week Wheat quotes are expected to trade steady to slightly weak and hover in the range of $165 to $190 in coming weeks. Global Wheat Indicative FoB US Gulf Australia Russia India International Outlook: Global wheat market is expected to trade from steady to slightly weak as ample supplies are available in the market. Russia has harvested recorded crop of 73.3 MMT in 2016 up by 18.6 percent compared to Argentina witnessed substantial increase in area sowed and has harvested around 18.3 MMT. Forecast for EU wheat harvest has been revised down due to severe cold in eastern EU. However the reduced forecast of MMT is still higher compared to last year. Australia is set to harvest record crop of around 34 MMT beating its previous record 29.9 MMT. Furthermore, Canada harvested around 31.7 MMT as higher yields compensated for a 7% drop in harvested area. Increase in export demand from various countries is also providing support to prices of exporting countries. Therefore, Steady to slightly weak market is expected in short to medium term. Disclaimer The information and opinions contained in the document have been compiled from sources believed to be reliable. The company does not warrant its accuracy, completeness and c orrectness. Use of data and information contained in this report is at your own risk. This document is not, and should not be construed as, an offer to sell or solicitation to buy any commodities. This document may not be reproduced, distributed or published, in whole or in part, by any recipient hereof for any purpose without prior permission from the Company. IASL and its affiliates and/or their officers, directors and employees may have positions in any commodities mentioned in this document (or in any related i nvestment) and may from time to time add to or dispose of any such commodities (or investment). Please see the detailed disclaimer at 2017 Indian Agribusiness Systems Pvt. Ltd.