Moderate demand for wheat continues to be the prevailing picture in European export figures this week. However, there is a silver lining. Egypt is reportedly shopping heavily for wheat in France. In the US, Trump has once again caused a stir. This time, it's the green energy plans that are putting pressure on the soybean market in particular.
The September wheat contract on the Matif closed yesterday down €1,75 at €195,50 per tonne. Wheat also took a step back on the CBoT, closing 4 cents lower at $4.98 per bushel. Corn also closed lower, losing 3 cents to close at $3.79 per bushel. Soybeans closed 0,8% lower at $10.13 per bushel last trading session.
European wheat exports haven't really picked up yet this season. According to data from the European Commission, 17 million tons of wheat had been exported up to and including August 1,78. That's less than half of what was exported during this period last season.
A bright spot for European wheat exports came from Egypt. According to Reuters, the Egyptian state-owned wheat buyer, Future of Egypt (FoE), has signed a deal for at least 200.000 tons of French wheat. Agreements have also been reached for wheat from Ukraine and Romania. Some Reuters sources even mention 400.000 tons of French wheat secured by FoE. The buyer is not disclosing prices and volumes, but the range is likely between $265 and $275 C&F (freight forward), according to Reuters' sources.
According to some, Egypt's current purchase of a substantial volume of French wheat is due to the limited availability of Russian wheat. "The French harvest is practically over, so French wheat is available," a German trader told Reuters. "I think Egypt prefers Russian wheat, but the supply of the new Russian harvest is still very limited because farmers aren't selling enough, especially wheat with 11% protein."
Biofuel
In the US, President Trump once again caused unrest. This time, it was the news that the USDA, under the Trump administration, would no longer support solar and wind farms on agricultural land. This fueled fears that Trump might also be less receptive to biofuels than previously anticipated. The greatest impact of this fear was visible in soybean oil, which can be blended directly into diesel. Corn also suffered, due to the large quantities that are used in ethanol.
The US wheat harvest hasn't even finished yet, but analysts are already cautiously anticipating the 2026 harvest. It won't be long before the first wheat is sown on the southern prairies. Rain is forecast for that region next week. This will replenish soil moisture, and it looks like a good start for winter wheat in the upcoming harvest.