Cereals News, 22.11.2024

After a volatile trading week, both wheat and maize prices in the USDA were bullish. The current developments in the Russia-Ukraine war remain the main topic at the moment. According to the Institute for the Study of War (ISW), Western-made missiles were used against targets in Russia for the first time. It was also reported that the headquarters for the Kursk counter-offensive was hit on Wednesday night. Traders in particular are worried about export business around the Black Sea as a result of these developments. This latest escalation could change the severity of Russia's retaliatory measures and, according to many market participants, prompt investors and speculators to close out their net short positions.

The data published yesterday by the International Grains Council (IGC) also supported the price increases on the futures markets. According to the data, global wheat production fell by 2 million tons to 796 million tons. Consumption rose by 1 million tons, with global stocks falling by 3 million tons to 263 million tons.

Developments in the past week also provided bullish impetus for maize overall. Additional support was provided by the EIA's report that ethanol production remains at a very high level. With a decline of 3,000 barrels, this week's result was only slightly below the previous week's level. Average daily production thus reached 1.11 million barrels by last Friday. Stockpiles increased by 524,000 barrels to 22.56 million barrels over the week.

The International Grains Council (IGC) also lowered its estimates for corn stocks. According to these estimates, maize production rose by 1 million tons to 1225 million tons, but consumption increased by 4 million tons.

The strong US dollar, however, is limiting the rise in prices. The US dollar index has risen to its highest level since October last year.