European grain exports continue to lag behind due to competition from the Black Sea region and weak global demand for wheat. Russia is also noticing this in its wheat volumes, which are much lower than a year ago. A record number of soybeans are being processed in the US.
The March wheat contract on the Matif closed yesterday unchanged at €213,75 per tonne. This keeps the contract at its lowest level in two months. On the CBoT, on the other hand, all quotations increased. Wheat rose 2% to $6.05 ½ per bushel. Corn rose 1,7% to $4.47 ¾ per bushel. The soybean contract rose 2% to $12.18 ¾ per bushel.
There was very little major news about wheat last trading session and this is also reflected on the Matif. Wheat was on the rise on the CBoT and this was mainly due to other commodities that generally rose throughout the day. The European Union's somewhat meager wheat exports were once again emphasized on January 28. Until that date, EU exports of soft wheat in the 2023/24 season amount to 18,23 million tons, more than 5% lower than a season ago. European barley exports amounted to 3,37 million tonnes, slightly less than the 3,41 million tonnes in the same period last year. Market competition from the Black Sea region, Russia and fairly weak international demand are the reasons for the lower exports, according to analysts. Corn imports actually fell to 10,2 million tons, 41% lower than a year ago.
Grain exports in Russia are also significantly lower than a year ago, the Russian Grain Union announced. January grain exports are expected to amount to 3,9 million tons, which is 27% less than in January 2023. It is mainly wheat that is in lower demand and this grain will account for approximately 3 million tons in January. Last year that was 4 million tons. Significantly less wheat was also exported in December. Then exports lagged behind by 26%.
Winter wheat in the US survives the winter reasonably well
In the US, winter grains are coming through the winter mixed - but on average better than according to the previous measurement in December - according to data from Tuesday's USDA State Crop Progress report. Good to excellent status for winter wheat improved to 54% in the top producing state of Kansas, compared to 43% at the end of December. In the same period a year ago this was only 21%. This is mainly due to the increase in moisture. However, there has been a considerable cold period below freezing point and the report leaves the effect open. Crop status in Nebraska also improved dramatically, from 48% to 69% with good to excellent status. Winter wheat in North Carolina has actually declined in standing. In other states there is a limited difference. Earlier this month, the total U.S. winter wheat acreage for next summer's harvest was estimated at 34,4 million acres. That is 6% lower than the 2023 harvest, but 3% higher than the 2022 harvest.
Soybean processing at record pace
U.S. soybean processing capacity reached 206,1 million bushels last December, the highest ever recorded, according to Reuters news agency. That means it would be the third straight month in which national processing breaks the 200 million bushel mark. This week the USDA will release official figures that should confirm this.