The European and American grain markets are out of step. On the Matif, wheat gave in again, while on the CBoT, the gaze is once again directed upwards. Good export figures gave the US market a boost, while the European market hardly reacted to it. Putin was also emphatically involved in the grain market.
The March wheat contract on the Matif gave up €0,75 yesterday to close at €286,75 per tonne. On the CBoT, the wheat contract rose 1,1% to 7.51¾ per bushel. Corn rose 1,5% on the Chicago stock exchange. Soy also showed an increase, but at 0,8% it was slightly less than in grains.
The EU exported 15 million tons of wheat this season until January 17,67. That is 6% more than last season when the counter stood at 16,63 million tons over the same period. France is by far the largest wheat exporter with 7,5 million tons. Germany and Romania follow behind with 2,01 million tons each. Morocco, Algeria and Egypt are the largest buyers of wheat from the EU. Despite the good exports, the wheat quotation on the Matif took a step back yesterday. The USDA also released the weekly export figures yesterday. With weekly exports of 774.461 tons of corn and 2,075 million tons of soy, US exports were above market expectations and that supported prices, according to several analysts.
food security
Russian President Putin announced yesterday that Russia will have to maintain a stable food supply, if necessary with export restriction measures. According to Putin, the agricultural complex has made an important contribution to the resilience of the Russian economy. "We must of course ensure that the sector can continue to operate, make a profit and invest in the 2023 harvest," the president said during the broadcast cabinet meeting. "We cannot allow everything to be towed abroad. Despite all the logistical restrictions on freight, on insurance, it all still flies out."
The 2023 harvest is still uncertain and Putin cited the mild weather in the European part of Russia and the frost in Central Asia. That is why stable reserves are absolutely necessary according to the president. Putin did not specify exactly what measures the Kremlin intends to take to safeguard Russia's food security. According to analysts, Putin sent a clear signal that the geopolitical uncertainty in the Black Sea region is certainly not over yet.