Wheat quotes closed negative on both the Matif and the CBoT in the past trading session. Developments in the Black Sea region are the main mood maker in the wheat market. Due to the strong price movements of wheat, there is less attention for maize and soya. But a remarkable development is also taking place in these raw materials.
The September contract on the Matif closed 3% lower yesterday at €385,50 per tonne. On the CBoT, the wheat quotation also took a step back by 1,9%. According to analysts, traders have cashed in on the profits after the 5% rise on Monday on both exchanges. The downward momentum in the market is powerful, as the technical analysis of the wheat market. The first support level is at €370 and resistance is at €400 per tonne.
Wheat exports from Ukraine continue to dominate the market. On Tuesday, June 6, the Defense Minister of Russia and Turkey discussed the possibilities for an export corridor for wheat from Ukraine and northern Syria. This conversation is a preparation for the meeting between the foreign ministers of both countries that is planned later. Russian news agency TASS reported today that grain exports from the Russian-occupied port of Berdyansk will resume this week once all (sea) mines around the port have been removed.
Not responsible
Russian Foreign Minister Lavrov announced today that he will not use the situation surrounding grain transports in Ukraine in favor of the 'special operation' as long as Ukraine grants the ships safe passage. Moscow, meanwhile, continues to deny responsibility for the global grain/food crisis. According to the Kremlin, the problems were caused by Western sanctions.
Less spectacular than the wheat price, but still remarkable, are the price developments of corn and, to a slightly lesser extent, soy. Yesterday the prices of these crops closed 2% and 1,7% higher respectively. In the Crop Progress report published on Monday, 73% of the corn area was given the status of good or excellent. That percentage is higher than many analysts expected in advance. With this, the USDA made it clear bearish signal. According to experts, the fact that the price is nevertheless rising indicates that there is a strong demand for corn and soy in the physical market. High fuel prices play an important role in this. The demand for corn for ethanol production and soy for diesel therefore remains intact.