The decline in cereal prices favors a small recovery in purchases globally

Published 2024년 6월 26일

Tridge summary

The global wheat market is experiencing a downturn, with prices dropping after initial gains due to reduced Russian harvest forecasts for 2024. This decline is attributed to abundant harvests in the United States and strategic selling by investment funds. Despite this, importers like Algeria, Jordan, and Egypt have taken advantage of the lower prices to make purchases, primarily from the Black Sea region. The fall in prices is anticipated to help reduce food inflation and ease the burden on consumers.

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

Original content

“We have the impression that the downward trend is on autopilot,” summarizes Sébastien Poncelet, cereals specialist at Argus Media France (Agritel firm). “We have a wheat market which has erased in two months all of its gains linked to the lowering of Russian harvest forecasts for 2024, from 93 million tonnes at the end of April to 80/82 million tonnes at the end of June”, he emphasizes. In continuous decline since the beginning of June, the tonne of soft wheat rose slightly on Wednesday on Euronext, trading in the afternoon around 224 euros on the September deadline, the earliest. On the Chicago Stock Exchange, a bushel (27 kg) for delivery in July closed Tuesday evening at $5.7 (compared to $7 at the end of May). In the United States, “the harvests are putting wheat prices under pressure” and investment funds continue to bet on the decline, remaining oriented towards sales, notes Michael Zuzolo, of Global Commodity Analytics and Consulting. In the American Great Plains, the ...

Source: TerreNet