Inside: Grains & Raw Material
Week 7: grain market under the spell of the weather
There is a weather market in the United States (US) and Brazil. The drought in Brazil and Argentina affects the wheat price on the CBoT in Chicago. However, this does not directly ensure that the market is firmer.
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Choose the subscription that suits youThe crops can still recover in case of rain. However, the yield forecast for the Brazilian wheat harvest has been reduced by 2,4 million tons to a total of 4,3 million tons. As a result, Brazil will have to import considerably more; instead of 5,5 million tons, about 8 million tons.
More exports around the Black Sea
Exports from the Black Sea region seem to increase slightly this year. Exports of 37,5 million tons are expected, compared to 36,5 million tons last year. This is despite the fact that 3 million tons less was produced in Russia compared to last year (85 million tons).
Ukraine also produced less (26 million tons). It is striking that, despite a weak dollar, exports from the US are 10% behind compared to last year.
European markets volatile
The European markets show a mixed picture with an increase in the French spot quotations from €3,50 to €160,50 per tonne (delivery in March) and decreases of several euros per tonne in Germany and the Netherlands. The maize forward quotation (March delivery) rose by €2,50 to €153,75 per tonne, from a June quotation of €160 (+€1,75) per tonne.
The closing price of wheat on the Matif shows a yo-yoing picture.
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