The wheat market feels more and more solid. The Matif closed in the plus on Tuesday March 15 and the CBoT also made up for some losses on a cautious note. The relatively high wheat price is attracting the attention of India. As a large producer, they are looking for ways to take advantage of this.
The May contract on the Matif closed on Tuesday 15 March at €386,50 per 100 kilos. That is €8,25 higher than the day before. The contracts for the new harvest are also on the rise, albeit with marginal numbers. The September contract closed at €326,25 per tonne, an increase of €0,75. The May-2023 contract stands at €306,25 per tonne. That's €1 higher. The futures market in the United States shows a similar picture. The wheat quotation is up about 4%.
The maize quotation showed a small plus on both the Matif and the CBoT. However, the soybean quote took a step back on the CBoT. Here, according to traders, there are fears that demand for soybean oil and soybean meal is declining due to new corona outbreaks in China
Tension continues
Russia's restrictions on grain exports to former Soviet republics have put a floor in the market. In addition, the wheat quotation has significantly declined compared to one week ago. The problems with sowing and crop care in Ukraine and the drought in the United States lead analysts to think that the current quotations may be on the low side. Traders know that the €400 per ton can be passed. In the geopolitical tensions, it only takes one thing to push the price up again.
The relatively high wheat price and the (partial) disappearance of Russia and Ukraine mean that other countries want to take advantage. India is one of them. The country announces that it is taking actions to increase its export position on the world market. India has a relatively large stock of wheat and would like to cash in on that. Reuters reports that space is being made for transport on the railways and ports and that grain exports are given priority over other products. By stimulating exports, the government hopes to generate additional income for Indian farmers and save on intervention purchases.