The recent sharp drop in wheat prices on the two stock exchanges in Paris and Chicago are now increasingly ensuring that buyers use the more favorable price level to build up new positions. Correspondingly, Matif wheat went north by 5.75 euros yesterday in the coming front month of March 23. The March contract closed at 307 euros/t. The press conference in Beijing, after which the Chinese government explained further easing of its Covid policy, also caused optimism. The Russian agricultural consultancy Sovecon revised its export forecast for the country upwards by 200,000 tons. It is expected that Russia could now export 43.9 million tons of wheat in the current marketing year. The wheat harvest is just beginning in Australia. The harvest work is accompanied by dry weather and favors a quick start to the harvest. On the local cash markets, the prices on the stock exchange, which have fallen significantly recently, have caused producers to increasingly offer and sell their stored goods. However, mills are only receptive to a limited extent. Consumer demand for flour is obviously not developing as planned, and many buyers currently only want to buy short-term requirements in anticipation of further falling prices.
Source
VR AGRICULTURAL
