Shortly before the weekend, wheat prices in the USA came under pressure again, continuing the volatile course of the week. A clear direction currently only seems to exist on a daily basis. Chicago wheat recorded a fall of 6.40 US cents and is now trading at the equivalent of €204.76 per tonne. Futures in Kansas also had to give way, falling by 6.20 US cents to 607.40 US cents/bushel for the front month. Futures in Minneapolis were no exception yesterday and also closed in the red at the end of trading. Market participants are expecting US data on export sales today and anticipate that between 300,000 and 600,000 tons of wheat orders were received in the week of February 13. New crop sales are expected to be between 0 and 50,000 tons. Yesterday, the focus was on the latest report from the International Grains Council. The analysts adjusted their forecast for total global grain production (wheat and coarse grains) in 2024/25. With a correction of 3.0 million tons to 2.301 billion tons, the current forecast remains below last year's record figure of 2.309 billion tons. On Euronext, wheat contracts were unable to turn the tide shortly before the weekend and fell marginally. Meanwhile, trading on the local cash markets was largely quiet. A few smaller transactions were concluded, but overall most mills are currently still supplied. Contrary to the weak wheat markets, maize contracts in the USA held their ground and rose slightly shortly before the end of trading on Thursday. The leading March futures contract rose by 0.40 US cents to 498.00 US cents/bushel. The signs were also green for the backwardated futures. As with wheat, the IGC experts have lowered their forecast for global production. This is estimated at a total of 1.216 billion tons - around 2 million tons below the previous result. The less than ideal conditions in South America were cited as the main reason for the downward revision. The USDA analysts are more pessimistic with an estimated production of 1.212 billion tons. Corn contracts in Paris also ended trading with losses. The March price fell by €0.75 to €227.50 per tonne.
ZMP Live Expert Opinion
To summarize, the wheat markets in the USA and Europe were under pressure at the end of the week, while the maize markets in the USA made slight gains. Forecasts for global grain production were revised downwards by IGC analysts due to unfavorable conditions, particularly in South America. Overall, the market remains volatile and trading activity was relatively quiet before the weekend. A clear direction still seems difficult to find and volatile stock markets are also expected in the coming week.
You see historical data because you're not logged in or not a ZMP Live+ member. Get your information advantage now!
