European wheat market: Euro weakness and Black Sea supply concerns boost European wheat gains

Wheat

Bulgaria

Published Mar 26, 2024

Tridge summary

Wheat prices have experienced fluctuations due to various global factors, including the conflict between Russia and Ukraine, weather conditions, and currency movements. French wheat prices increased, and futures in Euronext and Chicago saw significant rises. Concerns over Black Sea wheat exports have been heightened by Russia's halt in exports over quality issues and ongoing geopolitical tensions. Despite dry weather in Russia and Ukraine, crop conditions remain favorable. The euro's decline has made European wheat more competitive overseas. Adjustments in EU wheat production forecasts reflect slight decreases, while rapeseed planting has increased. EU wheat exports have slightly declined, with Morocco being the top destination. Investment funds have reduced their net short positions in EU wheat futures, indicating a complex global wheat market influenced by geopolitical, climatic, and economic factors.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

As of Thursday (March 21), the delivery price of first-class French wheat at the French port of Rouen was US$214/ton, up US$3 from a week ago, and the price range over the past 52 weeks was US$209 to US$296 per ton. . The price of second-grade wheat in Argentina is US$224/ton, up US$4 from a week ago; the price of US No. 2 hard red winter wheat is US$271/ton, down US$1 from a week ago; the price of US No. 2 soft red winter wheat is US$227/ton , up $2 from a week ago. On Friday, Euronext's most actively traded May wheat futures closed at 207.25 euros/ton, up 12.25 euros or 6.28% from a week ago, hitting a six-week high; Chicago wheat rose 4.97% during the same period. Russia carried out retaliatory strikes on Ukrainian energy facilities on Friday as Ukraine has stepped up attacks on Russian infrastructure in recent weeks. A Kremlin spokesman declared on Friday that Russia was in a "state of war," a term that Russian officials had previously avoided using, instead defining the ...

Source: Foodmate