Wheat prices skyrocketed yesterday. Once again, geopolitical tensions were the primary trigger for the price gains. On the Euronext/Matif, the December contract went north by EUR 13.50/t. On the CBoT, it went up by 63.25 euros to 893.75 US cents/bu (329.45 euros/t). The news that Russia wants to hold independence referendums in the occupied territories of Ukraine is causing tension and raising prices. In addition, rumors are circulating that there will be a general mobilization in Russia. There is great concern again that this could also soon end Ukrainian sea exports. In addition to concerns about geopolitical tensions in Ukraine, the overall news situation is calm and manageable. The demand for wheat on the cash markets in Germany is still calm or non-existent. The US spring wheat crop is on target at 94 percent and has been catching up well in recent weeks. Winter wheat sowing is progressing somewhat more slowly than last year. Significant price increases are also evident on the eCBoT before the trading day.
Source
VR AgrarBeratung AG
