Wheat prices continued to fall yesterday. The December contract on Euronext/Matif lost EUR 1.25 and closed at EUR 328.75/t. There was definitely support in Europe from the good export figures. However, reports that the Russian winter wheat sowing could be smaller than previously expected but would be more than compensated for by a higher spring wheat acreage created pressure. The announcement that Russian troops are withdrawing from the Chesron region raises hopes that the threat to important Black Sea ports such as Odessa has eased, making it more likely that the grain corridor will continue. On the other hand, the WADE report released yesterday moved the market only slightly. US closing stocks were reduced as expected, but globally these shortfalls are more than offset by better harvests in Australia and Kazakhstan. For Europe, the USDA expects a wheat harvest that will be 0.45 million tons lower than before, but at the same time solid demand and thus reduced ending stocks. For Argentina, as expected, the USDA lowered its production forecast by 2 million tons to 15.5 million tons due to the prevailing drought in the country.
Source
VR AGRICULTURAL
