Good US exports this week and an apparently imminent trade deal with China caused wheat futures to close significantly higher in Chicago yesterday. The weekly US export sales of 502,700 tons of US wheat were above market expectations of 200,000 - 500,000 tons. Institutional investors bought 7,500 contracts of CBoT SRW wheat yesterday. The eCBoT is trading moderately firmer this morning.
On Euronext in Paris, wheat futures followed the positive cues from overseas and closed firmer. Signs of continued healthy export demand support the positive sentiment. The rise was limited by the firmer euro exchange rate. Tunisia launched a tender for the purchase of durum and soft wheat as well as feed barley of optional origin. FranceAgriMer raised its forecast for French wheat exports outside the EU for the third time in a row to 12.2 million tons. The strike in France against the pension reform could severely hamper export shipments in December. Strategie Grains estimates EU wheat exports in 2019/20 at just under 29 million tons. The analyst estimates EU wheat production in 2020 at just 140.5 million tons, which is significantly lower than in the previous year (145.8 million tons).
Source
HANSA Terminhandel
