Wheat faces pressure from Black Sea export prices

Best-traded Chicago wheat futures for May-24 tumbled by 3.6%, while falling on a spot contract basis to the lowest since August 2020.

The fall reflected further concerns over the competitiveness of Russian supplies, after Algeria’s OAIC grains agency was reported to have bought about 900 000 t of wheat from in the main Black Sea origin.

Prices were reported at about US$227-228 /t, cost and freight included, below the US$265 /t or so that OAIC paid at its previous tender, in mid-January 2024.

The fall in Chicago wheat prices, which came despite a fresh attack by Russia on the Ukrainian port of Odesa, was hastened by the surrender of the US$5.50 /Bu level which the May-24 had crawled back above as of the last session’s close.

Paris milling wheat for May-24 shed 0.8% to fall beneath the psychologically-important €200 /t mark while London feed wheat for May-24, having limited its losses in the last session, shed 1.4% this time to fall below £160 /t.

Tags: Black Sea, futures, milling wheat, markets, export, prices, Vegetable Oil, wheat, rapeseed