Tridge summary
The article provides an overview of the current situation and future projections for the common wheat market in North America and Europe. It highlights the balance of the market ahead of threshing, despite potential weather-related challenges that could affect crop yields. The situation in Saskatchewan is particularly concerning, with poor yields and quality leading to significant losses. Despite these issues, the US and Canada are expected to offset this by contributing an additional 2.5 million tonnes of hard wheat.
The article also covers price fluctuations for last year's Canadian wheat stock, noting a decrease due to harvest pressure, with different price ranges for first and second quality wheat in various European markets. It discusses the impact of Russia's increasing dominance in the global common wheat market, particularly in traditionally EU markets like Algeria, Egypt, Tunisia, and Morocco, due to geopolitical tensions. This trend is expected to continue, further reducing the EU's export share and potentially leading to a more significant presence of Russian wheat in the market, a situation referred to as the "Russification" of the common wheat market.
The article also covers price fluctuations for last year's Canadian wheat stock, noting a decrease due to harvest pressure, with different price ranges for first and second quality wheat in various European markets. It discusses the impact of Russia's increasing dominance in the global common wheat market, particularly in traditionally EU markets like Algeria, Egypt, Tunisia, and Morocco, due to geopolitical tensions. This trend is expected to continue, further reducing the EU's export share and potentially leading to a more significant presence of Russian wheat in the market, a situation referred to as the "Russification" of the common wheat market.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
The odds for now point to a state of balance until threshing is completed in North America, which faces weather conditions that could cut significant pounds from the crop, such as hail in southern Saskatchewan and rains in the north that delay harvest . SaskWheat's related report on September 3 is revealing of the extent of the problems in the south, seeing poor yields and qualities in the South, well below 200 kg per hectare, which could cut at least another 200,000 tonnes from estimates. On the other hand, the US – Canada combination produces an additional 2.5 million tonnes of hard tonnage compared to 2023, which clearly favors a containment of any upward trends for the time being. Indicatively, producer prices (CWAD) for last year's stock, not FOB, in Canada at the beginning of July were at 304-305 euros per ton, at the beginning of August at 280-282 euros per ton and finally due to harvest pressure it is currently at 260-265 euros the tuna with stabilizing trend for 15 days ...
Source: GRAgronews
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