Export sales fall short of preliminary expectations in US

Wheat

Published Mar 24, 2023

Tridge summary

In America, Thursday's trading day brought losses, but in Europe, trading showed a mixed picture. In Chicago, wheat became cheaper by 0.8 percent, corn by 0.5 percent, soybeans by 2.2 percent, and canola by 1.3 percent. In Europe, the price of mill wheat and corn also closed in the red, while the price of canola and fodder wheat rose. The movement of the Chicago corn futures price reversed and changed from an increase to a decrease, so the most active contract closed at a lower value on Thursday, which otherwise reached the highest value since February during the day due to Chinese demand. Wheat futures also closed lower after earlier gains, which were partly caused by disappointing export data. Soybean futures were also down on Thursday, as speculators liquidated long positions, i.e. speculating on price increases.

Original content

China bought an additional 123,000 tonnes of US corn, bringing total export sales to the country to more than 2.5 million tonnes. The uptick in Chinese demand is likely to be fueled by concerns over Brazil's pre-harvest delivery period and the shorter 60-day extension of the Black Sea grain corridor. It looks like they won't be able to get the input they used to have. They only buy food security” said Don Roose, president of Iowa-based broker US Commodities. Traders believe that the behavior of mutual funds, even amid the turmoil in the banking sector, is contributing to the buoyant movement in grain prices. Export sales of wheat for the week ended March 16 totaled 138,600 tonnes, below trade forecasts, according to data from the US Department of Agriculture (USDA). Export sales of corn were 3.189 million tons, as expected. Export sales of soybeans amounted to 351,500 tons, which is below market forecasts. In Europe, mill wheat went down to 245 euros after a 3 euro drop, corn went ...

Source: AgroForum