Wheat prices in Chicago closed inconsistently yesterday. Technical sales and the expectation of large harvests weighed on prices, while short position covers after multi-month lows boosted prices. Concern about the spread of the coronavirus continues to weigh on the market. The U.S. Department of Agriculture increased winter wheat ratings in major growing countries such as Oklahoma, Kansas and Illinois on Monday. Institutional investors bought 5,000 contracts of CBoT SRW wheat yesterday. The electronic night market is trading weaker again this morning.
Wheat futures on Euronext in Paris also ended the trading day inconsistently due to weak overseas requirements. The weaker exchange rate of the Russian ruble, which made Russian wheat cheaper for foreign buyers, also had a negative impact. In Germany, market participants hope that Saudi Arabia's tender for the purchase of 715,000 tons of wheat of optional origin will be taken into account. As part of an international tender process, Tunisia's state-owned grain agency bought around 125,000 tons of ground wheat of optional origin for the delivery period of March 15 and May 25.Ukraine could harvest another large grain crop in 2020 thanks to the favorable weather.
Source
HANSA Terminhandel
