Matif wheat went south again yesterday. The March date lost EUR 3.50 per tonne and closed at EUR 296.50. This development was also followed by the spot market listings. Bread wheat delivered to Hamburg is quoted at 325 euros/t for delivery in March, and 309 euros/t delivered to the Bavaria mill. International competition is particularly responsible for the fact that prices continue to fall. The good prospects for Australia and the good Russian harvest provide for corresponding competition. The Russian agricultural consultancy Sovecon yesterday again raised its export forecast for the first half of the year to 21.3 million tons. That would be a new record for the second half of the season. In Argentina, the wheat harvest has ended. According to the grain exchange in Buenos Aires, production should amount to 12.3 million tons, which is 10.1 million tons less than in the previous year. Wheat also went south at the CBoT. Although the USDA was able to report exports of 200,000 tons for the first week of January, the competition on the world market does not want to give rise to any real export fantasies. Next Thursday, January 12, the USDA will release its January WASDE.Weaker price trends for wheat are also evident in the US before the trading day.
Source
VR AGRICULTURAL
