While US wheat started trading yesterday with positive signs despite the rather subdued outlook in the WASDE report, prices on Euronext/Matif fell again yesterday. The March date lost EUR 1.75 and closed the penultimate trading day of the week with a settlement of EUR 291.25 per ton. On the cash markets in Germany, sales are still manageable, but feed mixers are showing increased interest here and there. In southern Germany in particular, buyers from Switzerland are also looking for wheat, barley and rye. The WASDE report by the US Department of Agriculture was the main market driver yesterday. The USDA increased winter wheat acreage in the US for the 2023 crop, as expected. It is calculated that the US acreage has grown by 11 percent compared to the previous year. Global wheat production is also expected to be slightly higher than previously. The fact that prices on the CBoT were still able to increase is mainly due to the significant price rallies for corn and soybeans, but also to the poor growth conditions in the Great Plains. After the dry autumn, the cold spell and the snowstorms around Christmas, the soil is currently lacking in soil moisture in many areas.The International Grains Council also published its assessment of wheat production yesterday. The panel's experts expect a stronger wheat harvest than before, especially in Ukraine.
Source
VR AGRICULTURAL
