Argentinian rains to bear on the market

Published Jan 20, 2023

Tridge summary

UK feed wheat futures have seen a decrease, following the lead of the Paris and Chicago wheat markets, which are under pressure from spill over weakness from maize and soyabeans, and lacklustre export demand due to strong global competition. Domestic market factors also contribute to the decline. Arguments have been raised about the feasibility of Russia's grain export forecasts due to logistical and insurance issues. In Argentina, improved weather is impacting the oilseeds market, and while widespread rains are expected to benefit crop production, ongoing drought conditions and the possibility of further revisions to crop estimates suggest a tightening of the global supply. Despite these challenges, Brazil is projected to see a record maize and soyabean harvest in 2023, which could have implications for the market.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Market commentary UK feed wheat futures (May-23) closed yesterday at £227.50/t, down £3.00/t on Wednesday’s close. New crop futures (Nov-23) closed at £220.75/t down £2.70/t over the same period. The domestic market followed both the Paris and Chicago wheat market down yesterday. Chicago wheat was down from spill over weakness from maize and soyabeans, as well as lacklustre export demand for US supplies given strong global competition. Paris wheat futures fell as competition from cheaper Black Sea supplies continues to weigh on the market. Russia’s Agriculture Ministry has estimated that Russia will export 55-60Mt of grain in the 2022/23 season, and that there is no plans to lower the grain export quota. (Interfax, Refinitiv). But given the current situation around logistics and insurance, there are questions to whether export pace will reach these forecasts. Paris rapeseed futures (May-23) continued their weekly pressure, closing yesterday at €540.25/t, down €3.25/t on ...

Source: Ahdb