Technical purchases, gains in the soybean and corn complex and the weaker exchange rate of the US dollar caused wheat prices in Chicago to close at a premium yesterday. The US dollar fell after the Federal Reserve announced a rate cut to protect the economy from the effects of the corona virus. Institutional investors yesterday bought 3,500 contracts of CBoT SRW wheat. This morning the eCBoT is moderately weaker. As a result of the improved requirements from overseas, the wheat futures at Euronext in Paris also posted profits on all dates. The euro / US dollar exchange rate rose again yesterday, worsening the competitiveness of euro area wheat on the world market. Traders pointed to the strong wheat exports from France last month. Some expect the high volume to continue or even accelerate this month, but there have been doubts about demand in the final months of the current 2019/20 season (July-June). On the cash market in Hamburg, premiums for export wheat with 12% protein for delivery in April rose by 0.50 euros to 5.00 euros above Paris May 20. The warm weather in Western Europe and the Black Sea region favors bearish price developments.
Source
HANSA Terminhandel
