Wheat price remarkably stable in turbulent market

The September wheat contract on the Matif rose yesterday to €339,25 per tonne. This means that the price of wheat on the European stock exchange remains stable. In the US, the USDA's Wasde report provoked a strong reaction on the market, but there too the market is starting to stabilize again. Wheat, corn and soy took a step back on the CBoT.

In the USDA's Crop Progress report, corn and soybean status is better than expected. 58% of the soybean acreage in the US was rated good or excellent. That is 1% less than last week, while the market expected a reduction of approximately 5%. The condition of the corn has also remained virtually the same. Of the total maize area, 57% received the status of good or excellent. That is also a reduction of 1%. The moderate mood on the American stock market is partly due to the less favorable economic prospects in China. The central bank of the People's Republic of China lowered the interest rate due to disappointing economic growth. This is also fueling concerns in the grain market about a possible impending global economic recession. The American grain trade is extra sensitive to developments in China. The Asian country is by far the largest buyer of American soy.

Export
Wheat exports from the US for the 2022/2023 season are approximately 23% behind last year. As of June 1, 3,9 million tons of wheat have been exported. The high dollar exchange rate and exports from Ukraine that are slowly getting started are described by analysts as unfavorable for the American wheat market. The mood among European traders is somewhat more positive. Although Ukraine and Russia are seen as competitors on the grain market, several important buyers on the world market are cautious about doing business with Russia and Ukraine. On the one hand because of doubts about the long-term sustainability of the grain deal and on the other hand out of fear of violation of the Western boycott of Russia.