Wheat prices on the Paris stock exchange and on the cash markets in Germany were under pressure yesterday as well. The front month on the Euronext/Matif lost EUR 1 to EUR 255.25 per ton. Increased economic worries following the announcement by OPEC+ that oil production would be cut meant that the outlook for wheat prices was also gloomy yesterday. Stabilizing news, on the other hand, comes from Russia. After several well-known Western grain companies announced that they wanted to withdraw from the export business in Russia, the export prices there did not fall any further and even increased by 1 dollar compared to the previous week to 273 US dollars/ton (fob). Apparently, this also has a positive effect on the selling prices of local farmers. Yesterday, for the first time this year, the USDA published its inventory report with the status assessments of important arable crops, which will now be published weekly again. According to this, 28 percent of winter wheat stocks in the United States are classified in the good or very good category. This is the lowest value since 1989. Warm and dry conditions are forecast for the coming weeks, especially for the southern growing areas in the plains.Market participants had recently assumed that at least 31 percent would fall into this category. However, this news could not stop the price setback, the concerns of recession and economic slumps dominated late trading. Pre-market on the eCBoT today, the front dates in particular are falling very significantly.
Source
VR AGRICULTURAL
