European cereal prices supported by the strength of the dollar Decline in straw cereal areas despite a rebound in spring sowing

Grains, Cereal & Legumes
Market & Price Trends
Published Apr 18, 2024

Tridge summary

The American dollar's ascent to a five-month peak against the euro is reshaping the competitive dynamics between European and North American products, as highlighted by Damien Vercambre from Inter-Courtage. Despite the dollar's strength, the Black Sea region, especially Ukraine, continues to be a hotbed for wheat demand, highlighted by Egypt's recent procurement of 120,000 tonnes of Ukrainian wheat over cheaper Russian offers, a move perceived as politically motivated against Moscow's price control tactics. This currency fluctuation is rendering French wheat less competitive on the global stage, while adverse weather conditions threaten to diminish European wheat yields. Concurrently, the robust dollar is expected to hinder American wheat exports. Market analysts are keeping a close eye on weather patterns in Europe and the Urals for their potential effects on crop yields, amidst a backdrop of fluctuating oilseed prices.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The rise in the American currency, at its highest level in five months against the euro, "changes a little the balance of power between European and North American products", noted Damien Vercambre of the Inter-Courtage firm on Wednesday. Despite this, “it is still the Black Sea that is in demand, as shown by Egypt's latest call for tenders,” he added. The country announced on Tuesday that it had purchased 120,000 tonnes of wheat from Ukraine. “It is clear that operators with Ukrainian wheat are ready to make great efforts to pass it on,” noted Damien Vercambre. Offered at $224.90 per ton at the FOB price (without transport costs or insurance), the price was negotiated at $220, while the transport cost fell, after negotiations, from $49 to $35.35 per ton. tonne. That Egypt did not choose Russian wheat even though certain offers were initially lower than Ukrainian wheat, is undoubtedly a "political decision", with Cairo "seeing clearly that Moscow is requiring operators not to ...
Source: TerreNet
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