Shortly before the weekend, wheat prices on the US stock exchanges remained in recovery mode. On the Chicago Board of Trade, the May contract rose by 5.75 US cents to 554.00 US cents/bushel, while slight increases were also recorded in Kansas and Minneapolis. The agricultural markets are currently subject to significant fluctuations, mainly due to Trump's policies. Traders and investors are reacting sensitively. The overall mood on the agricultural markets remains tense, however, as US tariff policy under Trump seems unpredictable. The announcement that the recently imposed tariffs on Mexico and Canada will be suspended for the time being until April 2 caused a buying mood on the stock markets. This decision, which was announced via the Truth Social platform, had already been foreshadowed after Trump had previously signaled his willingness to make further concessions. International demand for US wheat has recently remained rather weak. The US Department of Agriculture reported orders of 338,700 tons for the week ending 27 February - a decrease of 25% compared to the average of the previous four weeks. Mexico in particular showed interest despite the trade tensions and ordered around 92,000 tons. Physical wheat exports amounted to around 380,000 tons, which is in line with the usual level. A total of 1.31 million tons were exported in January - the lowest figure for this month since 1972 and almost 26% less than in the previous year. In Europe, wheat prices on Euronext in Paris came under pressure due to the strength of the euro. The May contract fell slightly by €0.25/t to €222.75/t, while later delivery dates recorded minimal price gains.
News of Trump's tariff policy concessions also provided bullish impetus for maize. On the CBoT, the May contract rose by 8.25 US cents to reach 464.00 US cents per bushel (169.24 €/t). Mexico, the most important buyer of US corn, welcomed the temporary lifting of tariffs, which gave the market a noticeable boost. In addition, the weakening US dollar pushed up prices as US corn became more competitive on the global market again. However, international demand for maize has recently been less dynamic. The USDA reported orders of 909,100 tons for the 2024/25 season for the week ending 27 February - a decrease of 32% compared to the four-week average. The largest buyers were Japan (260,600 tons) and Mexico (249,400 tons). Weekly exports amounted to 1.27 million tons, down 10% compared to the average of the last four weeks. The Zenus data report shows that 6.16 million tons of corn were exported in January. - an increase of more than 43 percent compared to the previous year. Corn prices also rose slightly on Euronext. The June contract increased in price by 0.50 euros to 212.25 €/t.
ZMP Live Expert Opinion
Wheat prices on the US stock exchanges continued their recovery and corn prices were also supported by Trump's temporary suspension of tariffs. Despite the market recovery, sentiment remains tense, as US trade policy currently seems almost unpredictable and continues to cause surprises. International demand for grain has recently been somewhat weaker, but overall trade should regain momentum in the coming weeks. In Europe, the strong euro put pressure on prices and made for less competitiveness.
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