At the weekend, the prices for wheat on the CBoT and Euronext/Matif rose sharply again. The front month in Paris climbed by 14.25 euros to 259.25 euros/t. The dates of the coming harvest also picked up, although the gains here were somewhat more moderate. The increase is mainly driven by Russia. On the one hand, the farmers there are under massive pressure to sell due to the high harvest results and the significantly higher inventories, and so far the announcement of government stockpiling has changed little. On the other hand, rumors are spreading that the Russian Ministry of Agriculture has asked its traders to reduce exports of wheat and sunflower oil. This should stop the fall in prices on the world market. But there is also speculation that this is just a smokescreen to keep Russian farmers happy. In addition to the speculation and rumors about Russia, the recently significantly reduced price level also attracted bargain hunters to the two stock exchanges, who believe it is a good time to enter. The European grain trade association Coceral has revised its forecast for the European wheat harvest (including the United Kingdom) to 144.5 milliontons and thus increased by 1.2 million tons. In southern Europe in particular, the industry association expects higher wheat volumes compared to its December estimate. Excluding Great Britain, the wheat harvest is expected to be almost 130 million tons. Pre-market, there are slight but clear red signs on the eCBoT this morning.
Source
VR AGRICULTURAL
