The wheat price on the Paris stock exchange continues to move sideways. It's different on the US stock market. That's where the mood in the market is again. It is striking that the American analysts are also very sensitive to developments in the European market.
The quotation of wheat on the Matif remains remarkably stable. Yesterday, the September contract closed €0,25 higher at €340,50 per tonne. On the CBoT, wheat closed last trading session 2,3% higher at $7.99,75 per bushel (approximately €284 per tonne). Corn closed 1% higher in Chicago and the soy price remained virtually unchanged on the American stock exchange, down 0,2%.
The weather remains an important factor on the grain market. Although eastern parts of the Midwest have seen some rain in recent days, it remains very dry further west. The consequences of drought are also noticeable in Europe. The wheat harvest in Romania has been completed and the yield is approximately 15% to 18% lower compared to last year, Agriculture Minister Petre Daea announced. Meanwhile, traders and speculators are also anticipating the USDA's Wasde report, which will be released on Friday. A Reuters poll shows that the market is expecting a lower yield forecast for the American corn harvest.
Export from Ukraine is getting off to a slow start
The UN expects that grain exports from Ukraine will continue to increase. “We expect a significant increase in requests for transportation,” said Frederick Kenney, U.N. interim coordinator at the Joint Coordination Center, which is overseeing implementation of the grain deal. "The goal is to export 2 to 5 million tons of grain monthly and that is feasible." There are still an estimated 20 million tons of grain in Ukrainian stores from the 2021 harvest. The harvest for this season is estimated at around 20 million tons. So far, 12 ships have sailed through the three ports covered by the deal. Four ships have been given permission to sail to Ukraine. The UN emphasizes that the grain deal is a commercial and not a humanitarian operation. The ships that have left so far have mainly been loaded with corn. Cargoes of soybeans, sunflower oil and sunflower meal have also left Ukraine. Wheat has not yet been exported via the Black Sea under the deal. According to Kenney, this is because the silos at the terminals are still full of corn. According to the UN official, there is enormous interest among shipowners in sending empty ships to Ukraine. Several ships are already waiting in Turkey to set sail for Ukraine.