Unfavorable vegetation conditions in large parts of the US wheat growing regions as well as dry weather in the Black Sea region caused the CBoT wheat courses to close more tightly for the second day in a row yesterday. The weekly US export inspections were at 320.371 tons of wheat at the lower end of the market expectations. Institutional investors bought 4,000 lots of CBoT SRW wheat yesterday. e-CBoT is trading weaker at the moment.
The prices of the Matif wheat futures rose significantly yesterday because the demand on the spot market is very good. We also have a relatively weak euro exchange rate against the US dollar. The latest tenders from the importing countries suggest that the strategic reserves should be increased there. Jordan bought 120,000 tons, Turkey wants to buy 250,000 tons of wheat and Saudi Arabia wants international investors to deliver 355,000 tons of wheat to their kingdom. Egypt and Algeria are likely to be in demand again after their tenders failed last week. Wheat exports from the EU and the UK were 24.78 million tons, 66% higher than a year ago. With 1.63 million tons in March, France exported as much wheat as it had not in the past 10 years.
Source
Hansa Terminhandel GmbH
