The US stock market was moderately positive during the recent trading session, while grains in Europe closed in the red. This is the effect of the dollar's decline. New yield figures were also released from the United Kingdom and Argentina.
The March wheat contract on the Matif closed yesterday down €1,50 at €188,50 per tonne. On the CBoT, wheat rose 3.5 cents to $5.34.5 per bushel. Corn moved more sideways, ultimately closing 0.5 cent higher at $4.35.5 per bushel. Soybeans, like grains, closed in the green, up 2.5 cents to $10.93.5 per bushel.
A lower dollar and demand from China have boosted sentiment on the Chicago stock exchange. Yesterday, it was announced that China has placed an order for 264.000 tons of American soybeans. However, due to large stockpiles hanging over the market, enthusiasm is less than expected, according to some analysts.
The dollar's fall to its lowest level in a month and a half is bad news for European exporters. Due to stiff competition from wheat from the Black Sea region, European exporters are already in a difficult position, and competition from the US is only making things worse.
Question from Tunisia
Ukraine is also struggling to find customers for wheat. This season, Ukraine exported 7,52 million tons of wheat, compared to 9,18 million tons during the same period last season. More positive news came from Tunisia, which tendered 125.000 tons of soft red wheat, 100.000 tons of durum wheat, and 125.000 tons of barley for delivery in January and February. The countries of origin have not yet been announced at the time of writing.
The Rosario grain exchange further raised its forecast for Argentina's wheat harvest to a record 27,7 million tons. Last year, Argentine growers harvested a total of 24,5 million tons. The exchange did not comment on the quality of the wheat, but several sources indicate that it is disappointing and, combined with the good harvest, is putting pressure on prices.
In the UK, farmers harvested 11,96 million tonnes of wheat last season, according to new figures from the UK Department of Agriculture. This represents a 7,3% increase in harvest compared to last year. The yield, at an average of 7,2 tonnes per hectare, is 1,7% lower than last season. A 9,1% increase in the area to 1,7 million hectares resulted in a larger total harvest.