The agreement between the USA and China in the trade dispute, Argentina's announcement to increase export tariffs and significant price increases in the soybean and corn complex caused wheat futures to close sharply higher in Chicago yesterday. At 506,291 tons of wheat, weekly US export inspections were above market expectations of 300,000 - 500,000 tons. Institutional investors bought 15,000 contracts of CBoT SRW wheat yesterday. The eCBoT is trading slightly weaker this morning. On Euronext in Paris, price gains were more moderate as the market focused less on the agreement between the US and China. At the same time, the firm euro/US dollar exchange rate, which rose to a 4-month high, limited the upside potential. EU soft wheat exports in the current 2019/20 marketing year reached a volume of 12.8 million tons as at 15 December, compared to 7.7 million tons at the same time last year (up 66%). In France, premiums on the cash market remained stable. However, traders are concerned about the impact of the strike, which could severely disrupt grain logistics at the end of the year. Frost tolerance for winter cereals in the EU is much lower than usual this year due to above-average temperatures, according to the EU's MARS monitoring service.
Source
HANSA Terminhandel
