Cereal market nervous due to winter weather

The March wheat contract closed $6,50 cents per bushel higher on Tuesday, which translates to $159,28 per tonne. That is the highest point since the end of October. Soy received an increase of $3,25 cents per bushel and corn an increase of $2,50 cents per bushel.

Fear of damage
The reason for the sudden increase in wheat is the fear of frost damage. During the start of the new year, the mercury dipped to -18 degrees Celsius or lower in the wheat belt. Not all crops are sufficiently covered with snow, which makes the risk of overwintering a real possibility. Over there wrote we mentioned earlier. The winter weather is expected to continue for the time being.

Frost damage has now been reported from several states: Kansas, Oklahoma, Colorado, Missouri, Illinois and Indiana. However, the full damage cannot be assessed until next spring, when the plants start growing. The dry weather last fall and this winter does not help. The late-sown wheats in particular are not doing well.

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On January 2, wheat prices reached their highest point since October 25.Exchange rates
The European wheat price pays little attention to what is happening in the United States. The wheat contract on the Matif closed €2 lower on January 0,50, at €158,50 per tonne. On the first day of trading, the euro closed stronger against the dollar at $1,2047. That helps the competitive position of American grains.

It is bad news for Europe. Together with the news that drought in South America may lead to a reduction in yields, soy and corn also showed gains.

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