Wheat failed to hold Wednesday's gains on Euronext/Matif in Paris. For the front month of May, prices went south by EUR 3.50 to EUR 268.50/t. Although the agreement on Ukrainian agricultural exports has not yet been signed and the negotiating parties are still arguing about how long the extension will last, no one seriously believes that the agreement will fail in the last few meters. In particular, Ukraine itself, Turkey and the United Nations are calling for an extension of at least 120 days, while Russia is sticking to the 60-day term. After the ECB meeting yesterday afternoon and the decision to raise the key interest rate by 0.50 basis points, the euro rose again slightly, putting slight pressure on wheat prices. The International Grains Council yesterday adjusted its new production forecast for 2022/23 upwards. The committee in London expects a global harvest volume of 801.0 million tons, which is 5.0 million tons more than before. Global ending stocks, which the Grain Council now sees at 286 million tons (+1.4 percent), are also likely to increase. Wheat also went south on the CBoT.The fact that US export sales of 336,000 tons were significantly better than in the previous week did not change this. Pre-market prices on the eCBoT are picking up again this morning.
Source
VR AGRICULTURAL
