Wheat went significantly south yesterday. On the Euronext, the front month lost EUR 7.50 to EUR 287.00/t. First and foremost, the negative signals from overseas weighed on trade. But the overall great global competition for the cheapest wheat price is also weighing on the markets. Egypt is looking for a large tender for wheat that traders and market watchers expect will go back to Russia. According to ICAR, export prices in Russia have recently been stable, but Russian exporters outperformed European offers with very favorable offers. On the local cash markets it remained quiet yesterday. Hardly any trading activities were reported, especially in the Rhineland and in the south. Feed and bread wheat prices also fell as a result of weaker stock market prices. On the CBoT, wheat lost double digits. With a settlement of 750.50 US cents/bu, US wheat costs the equivalent of 259 euros/t. Weak export shipments reported by the USDA yesterday weighed on sentiment, as did the resurgent US dollar. The price decline is only slowed down by dry growing conditions in the main growing areas in the Great Plains.Tomorrow and the day after tomorrow, the USDA will give an initial assessment of the acreage for the coming harvest in its annual Agriculture Outlook Forum. The majority of market participants expect US acreage to be increased significantly.
Source
VR AGRICULTURAL
