On the Euronext/Matif in Paris, wheat contracts went south again yesterday. The most traded May date closed EUR 3.25 per ton lower at EUR 272.50/t. Hardly anything has changed from the previous situation on the spot markets. The overall supply of grain is low, and demand is restrained. Mills are also increasingly postponing acceptance dates for wheat, as market participants report. In southern Germany in particular, many traders expect that there will still be larger quantities of unsold grain in farmers' warehouses, which could result in an oversupply at the end of the season. Russia's Ministry of Agriculture announced yesterday that it would like to hold on to the export quota of 60 million tons of grain for the time being. At the same time, criticism of the grain agreement was repeated. Russia's approval of the extension is only possible if the sanctions for Russian agricultural goods are lifted. There are no direct sanctions, but the difficult payment terms and sanctions against logistics companies are making Russian exports more difficult. In February, Ukraine exported 5.2 million tons of grain, slightly more than in February 2022. On the CBoT, wheat contracts stopped their downward trend yesterday.The most traded May was able to increase like the follow-up contracts. Speculative investors in particular used yesterday to stock up at cheaper prices.
Source
VR AGRICULTURAL
