Italy: Durum wheat shows signs of awakening, while soft wheat is stable

Published Apr 5, 2024

Tridge summary

The article provides an in-depth analysis of the current grain and wheat markets, highlighting the fluctuating prices and demand for key crops such as corn, soybeans, and wheat. It notes the stabilization of corn prices, the strength of the soybean market, and a slight increase in prices for medium-low quality durum wheat in Italy due to local demand and potential exports. The impact of climate on European crop production is discussed, with France facing issues due to excess water and Spain seeing improvements after March rains. The global grain market dynamics are influenced by factors such as Turkey's monthly sales auctions, North America's sowing forecasts, and North Africa's purchase auctions. Additionally, the wheat market is affected by Russian competition, weather conditions, and a 4% drop in wheat areas in the USA for 2023, alongside stagnation in trade from the USA-Canada and price competition from Black Sea origin wheat. Despite these challenges, the global market remains stable, as indicated by the increase in visible stocks in North American warehouses.

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

Original content

In the meantime, corn seems to have exhausted its brief upward push, while soybeans continue to show liveliness, based on the international trend. Durum wheat, interest in medium-low quality is emerging in Italy. For a couple of weeks, after performances that were anything but how brilliant, durum wheat prices have started to rise again due to the return of local demand (also for exports?) with buyer interest in medium-low quality. The stocks of non-EU origin (Black Sea) and the little national ones that are still to be placed below cost at today's prices remain available. The prospects for the new harvest are favorable and the sirens of offers in June from Spain lead to caution in demand, which maintains an adequate level of coverage, even if it accepts rising prices on the spot. The “Fino” Central return to the North is quoted at €335/t, with the equivalent return to the South over €345/t; merchant ships confirming the pre-Easter spreads: minus €15-40/t in the South and €25-65/t ...

Source: Terraevita