Wheat prices rose by 2.5-3.9%, partially recovering from Monday’s decline

Wheat quotes, which fell after the “bearish” USDA report, rose by 2.5-3.9% yesterday amid pessimistic data on sowing in France.

According to the French Ministry of Agriculture, as a result of long rains during the sowing area, sowing of winter wheat decreased by 5% compared to last year to 4.5 million hectares, which is 5% lower than the average 5-year indicator.

EU wheat exports were down 15% from the previous season, from 15.85 million tonnes to 13.6 million tonnes, although the USDA had forecast a 7% rise to 37.5 million tonnes.

According to the MSG of the USA, the export of wheat from the USA for December 1-7 amounted to 281.7 thousand tons, and in general in the season reached 8.6 million tons, which is 29% less than the 11.1 million tons shipped at this time last year. In December According to the report, the USDA increased the forecast for wheat exports from the United States by 0.7 million tons to 19.7 million tons, compared to 20.5 million tons in 2022/23.

March wheat futures rose yesterday:

• by 2.6% to $229.8/t – for soft winter SRW wheat in Chicago,
• by 3.9% to $241.3/t – for hard winter HRW wheat in Kansas City,
• by 2.5% to $268/t – for hard spring HRS-wheat in Minneapolis,
• by 1.3% to €231.25/t or $249.4/t – for wheat on the Paris Euronext.

Last week, wheat prices were supported by increased purchases from China, but analysts believe that China will soon return to purchasing European (French) wheat.

In Ukraine, purchase prices for wheat rose against the backdrop of a 2.5% appreciation of the dollar against the hryvnia over the past few weeks.

Thus, purchase prices for fodder wheat rose to $148-150/t or UAH 6,100-6,150/t with delivery to Black Sea ports and $155-160/t or UAH 6,300-6,400/t with delivery to Danube ports. Food wheat prices rose in ports to $165-170/t or UAH 6,700-7,200/t.

Tags: prices, wheat