The wheat quote on the CBoT also showed a solid plus last night. It is becoming increasingly clear to traders that the war in Ukraine will not have a short-term effect on the grain trade, but that the consequences will last longer. Do American farmers adjust their construction plan accordingly?
The March wheat contract closed at $1.058,50 per bushel. That is approximately €351 per tonne. The May contract - which is currently the most traded - closed at $1.059 per bushel (also about €351 per tonne). The current rate is $1.134 per bushel (€376 per tonne). That is 7% higher than the closing price. This means that the quotation is approaching the daily limit. The first contract for the new harvest is also up, at $980,75 per bushel (c€325 per tonne). But this increase, at 2,6%, is slightly less than the contracts of the old harvest. December 2022 and March 2023 are currently at $891 per bushel and 851,50 per bushel respectively, down slightly from the closing price.
Corn contracts on the CBoT are also on the rise. The March contract has risen 3,7% compared to the closing price of Wednesday, March 2. The price increases of the contracts for the new harvest are more limited and range from 0,3% to 0,9% compared to the previous closing prices. The soy contracts across the board show a plus of approximately 1,5% compared to the closing price. Soy traders are especially looking forward to the American export figures that the American Department of Agriculture will publish this afternoon.
summer wheat
Normally, at this time of year, many market analysts are fascinated by the following question: 'what will be the ratio of corn to soybeans that American farmers sow?' With the high wheat price, experts wonder whether spring wheat will be an attractive alternative this year. Due to the fighting, there is a good chance that the sowing of summer crops and the care of winter grains in Ukraine will be jeopardized. In addition, infrastructure in the Black Sea region has been damaged and exports could be seriously disrupted for months to come. The high fertilizer prices then work to a disadvantage - especially for maize, which has a great need for nutrition.