After the significant drop in prices on the Paris stock exchange, wheat prices recovered yesterday and ended Thursday with a green sign. For the front month March 23 it went up by 3.25 euros to 284.25 euros/t. As a result of the declining stock exchange prices, prices for bread wheat and fodder wheat continued to be lower on a weekly basis on the spot markets in Germany. However, the willingness to sell in agriculture increased over the course of the week. Before important field work and because of the price pressure, producers seem to want to clear their stocks more and more. Due to a weakening demand for flour, however, mills are currently cautious in their purchases, and feed mixers are also mostly cautious. The euro also weakened against the US dollar yesterday, thereby supporting European competitiveness. However, the competition, especially from Russia, is great. Iraq has put out a tender for 200,000 tons, but wheat deliveries from the EU and Russia are explicitly excluded here. On the CBoT, wheat prices have also halted their slide.The weather prospects in the southern US growing areas have improved, where stocks have suffered primarily from drought. The USDA gave its first assessment of US wheat area for the upcoming crop yesterday. An area of 49.5 acres (approximately 20 million hectares) is expected to be planted with spring and winter wheat. 48.7 acres were expected in advance. If these figures are correct, this year's acreage would be the largest since 2016. Premarket wheat contracts in Chicago start today with losses in the last trading day of the week.
Source
VR AGRICULTURAL
