The wheat complex closed in the red on all three US markets on Thursday. Chicago SRW futures were consistently 4 ¼ to 4 ¾ cents lower than at the start of trading. However, contracts in Kansas and Minneapolis were also weaker shortly before the weekend. The weekly export sales report showed that a total of 290,236 metric tons of wheat were sold during the week of May 12, which was at the low end of estimates of between 275,000 and 600,000 metric tons. This was an 11-week low for sales and represented a 23.27% decrease from the previous week. Sales were widely dispersed, with the Philippines buying 92,000 tons and Mexico buying 73,700 tons. Meanwhile, global trade is becoming more dynamic again. Japan bought a total of 112,889 tons of wheat from Australia, Canada and the USA, but only 58,986 tons specifically from the USA. Saudi Arabia has issued a tender to purchase 595,000 tons of wheat, with bids due by Friday. In the market, some market participants are predicting that an increase in Russian export prices could impact global price levels, pointing to a recovery in global wheat prices. The latest news that the harvest prospects in Argentina currently look good could again put pressure on prices. Analysts from the grain exchange in Rosario have raised their forecast to 19.3 million tons. This corresponds to an increase of 0.5 million tons compared to the previous estimate. On Euronext, wheat futures were also unable to hold their ground and closed trading with slight losses. In view of new tenders, including 595,000 tons from Saudi Arabia, European traders are rather pessimistic that offers from Western Europe will win the race. Market participants are expecting more favorable offers from countries such as Bulgaria, Romania, South America and Australia. Corn contracts on the CBoT were unable to halt the downward trend of the past few days and ended Thursday's trading with weaker closing prices. In addition to the weak export bookings, which are almost 45% below the previous week's level, weak wheat prices also weighed on the market. The losses were only partially offset by the downward revision of yield forecasts in Brazil. The Euronext maize also followed the lead without any impetus and slipped into the red at the close of trading.
ZMP Live Expert Opinion
The grain markets have been weaker again in recent days. Disappointing US export figures, global price pressure and harvest forecasts, particularly in South America, put pressure on prices. Above all, market participants are looking at price developments around the Black Sea. Should Russian export prices actually rise significantly, this could also have a bullish effect on global prices.
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