Wheat futures in Chicago reached their highest price level since summer 2018 on Friday on hopes that the United States will increase its wheat exports following the agreement and signing of the "Phase One Deal" with China. Unfavorable weather conditions in Russia, Ukraine and Australia also boosted prices. Weekly US export sales of 714,900 tons of US wheat were in line with market expectations of 200,000 - 900,000 tons. Institutional investors bought 8,000 contracts of CBoT SRW wheat on Friday.
This morning, the electronic overnight exchange is trading moderately firmer.
On Euronext in Paris, wheat futures were able to follow the positive overseas trend on all dates and reached their highest price in six months. However, the significant rise in the euro against the US dollar prevented higher premiums. In Western Europe, analysts expect a sharp decline in acreage among the top producers France, Germany and the UK. The Ukrainian statistics office expects a 0.6% decline in winter wheat acreage for the 2020 harvest, while analyst APK-Inform forecasts a 10% decline.
Source
HANSA Terminhandel
