Getreide News, 04/06/2023

Wheat prices are under pressure in the first week of April. The prices continued to fall until noon today. Yesterday the closing price on Euronext/Matif was EUR 254.00 per tonne. Wheat prices have also fallen on the CBoT this week. It is still calm on the cash markets in this country. Also because many market participants are on Easter vacation, the sales are manageable. On the one hand, the news situation is characterized by developments in Russia. In the meantime, three well-known grain companies have announced their withdrawal from the Russian business. The Russian government has repeatedly tried to emphasize that the withdrawal will not have any impact on export shipments and that the lost capacity can be compensated for on its own. Recently, Russian export prices have stabilized somewhat and have increased slightly. On the other hand, the growing conditions in the USA also play an important role. After the USDA announced a slightly higher acreage last week, the department downgraded winter wheat condition ratings to 28 percent in the good or very good category in its first weekly crop report. This is the lowest value since 1989.The stocks suffered significantly from the snowstorms around Christmas, as well as from the current dry conditions, especially in the southern growing areas of the Great Plains. European exports remain at a high level. Compared to the previous week, around 20,000 tons more were exported. The soft wheat export counter now stands at 23.14 million tons. That is 1.63 million tons more than at the same time last year. Corn, too, showed a red sign during this short trading week. Yesterday, Wednesday, the front month of June closed on the Euronext/Matif with a closing price of EUR 251.25. Last Friday the quoted price was still 257.75 euros/t. Thanks to high imports, the market supply is good despite last year's poor harvest. The EU Commission's import statistics currently show a volume of 21.2 million tons. Last year at the same time it was 12.31 million tons. Spain and the Netherlands in particular import large quantities of maize, but more than 2 million tons have already been imported into Italy as well. Prices on the CBoT have recently been under pressure.The acreage has already been valued higher in the past week and friendly weather forecasts give rise to the expectation that the farmers will make rapid progress with the sowing that has already begun. The fall in prices is being slowed down by the continued good export opportunities for the Americans. The USDA was able to announce a flash sale of 125,000 tons of corn to an unknown buyer yesterday. The sharp increase in crude oil prices on all commodity markets caused a muted mood overall. After OPEC+ announced on Monday that it would significantly reduce production volumes, concerns about the global economy and the development of core inflation increased again. The stock exchanges in Chicago and Paris will remain closed over the Easter holidays.