The further spread of the corona virus outside of China, weak financial markets and falling crude oil prices closed the wheat futures in Chicago yesterday with significant losses. With a total of 449,900 tons of US wheat, weekly US export sales were at the lower end of the market expectations of 400,000 - 700,000 tons. Institutional investors yesterday sold 6,000 contracts of CBoT SRW wheat. This morning the eCBoT is still trading with losses. At Euronext in Paris, wheat futures followed weak overseas guidelines and recorded losses on all dates. The continued recovery of the euro against the dollar slowed down wheat prices on Euronext, since this makes Western European grain less competitive for exports. Against the backdrop of ongoing international demand, export prospects for European wheat remained good. The International Grains Council estimates global wheat production in 2020/21 to be a record 769 million tons. The area under cultivation has been increased by 2%. In addition, the non-governmental organization raised the harvest estimate for 2019/20 by two million tons to 763 million tons.
Source
HANSA Terminhandel
