Wheat prices gave back a small portion of the previous day's gains yesterday. The December contract on the Euronext/Matif in Paris fell by 1.50 euros/t to 352.25 euros/t. The CBoT also went slightly south yesterday, but prices are already picking up again in pre-market trading. On Friday night, Vladimir Putin recognized the decree for the independence of two Ukrainian regions, which is seen as an intermediate step towards full annexation. The fronts are likely to harden further in the conflict. Firmer prices for bread wheat and fodder wheat have recently been seen on the cash markets in Germany. In Hamburg, B-wheat is now quoted at 375/t for delivery in December. Russian wheat prices are hardly competitive on the world market. More and more Russians are fleeing back into the ruble, fearing that the renewed tensions will mean that they will no longer be able to exchange their dollar and euro holdings back. This ensures a strong ruble and limited competitiveness. US export sales reported yesterday were in line with expectations at around 250,000 tonnes of old and new crops.Today the USDA releases a report on the quarterly inventories, causing market participants to remain cautious.
Source
VR AGRAR
