The grain market shows a mixed picture. The wheat quotation in Paris is on the rise while in Chicago the price has fallen. As a result, traders react differently to the developments mainly from Asia that were in the news. Soy is stepping back on the CBoT and corn closed the last trading session in the plus on both exchanges. For these crops, it is mainly the progress of the spring work that keeps the market busy.
The May wheat contract rose to €408,25 per tonne last trading session on the Matif. That is €1,25 higher than before the weekend. The quotation thus maintains its upward trend for the fourth day in a row. The contracts for the new harvest also showed a cautious plus, with one exception: the December contract fell by €0,50 last trading session to €359,50 per ton.
On the CBoT in Chicago, wheat closed marginally lower. The May contract is at $1.062 per bushel. The contracts for the new harvest also took a step back. It is striking that almost all contracts for the new harvest are listed higher than the last contract of the old harvest. The July contract closed at $1.072,50 per bushel and that drops to $1.063,25 per bushel for the March 2023 contract.
Corn closed at €333 per tonne on the Matif in Paris last trading session. On the CBoT quotation, this crop came in at $800,25 per bushel. Soy fell 0,7% to $1.703,50 per bushel.
Moderate wheat condition
In the United States, the poor level of wheat on the 'southern prairies' continues to concern people. In the edition of the published Monday, April 25 Crop Progressreport shows that spring wheat sowing in the northern states is lagging behind the five-year average. About 13% of spring wheat has been sown, compared to a five-year average of 15% for the period of the year. It is more than what analysts and traders had previously assumed.
The above may explain the decline in wheat prices on the CBoT in Chicago. Corn sowing is still well behind the multi-year average. The five-year average is 15%. This year only 7% of the planned corn area is in the ground.
Issuance stop
China surprised the market yesterday (April 25) by halting auctions of wheat from the National Strategic Reserves from this week. Last year the issue continued until May 10. Animal feed producers were already excluded this season. The government took this measure to keep the wheat price down and not to let this season's already smaller supplies fall too far. According to analysts, the relatively early halt in putting reserves on the market fuels rumors that China's wheat stock is smaller than what the US Department of Agriculture (USDA), for example, estimates.
India also sees opportunities to play a greater role on the world stage, as a result of geopolitical tensions that have erupted with the war in Ukraine. India wants to bring more wheat to the world market to control food inflation, India's foreign minister said in a conference with European and Asian ministers. This must be approved by the World Trade Organization (WTO). “India is ready to step forward on major global issues.” According to the minister, India is already exporting more wheat to compensate for the loss of grain from the Black Sea region.