News

Iranian attack affects the US and European crop markets

Wheat
Published Apr 16, 2024

Tridge summary

In recent trading, agricultural commodities exhibited mixed performance, with European markets seeing gains while American markets faced declines. The drop in Chicago grain futures was influenced by concerns over the U.S. seeding season and adverse weather conditions, as well as market reactions to an Iranian attack on the Israeli border. Although the initial risk premium from the attack led to increased market volatility, especially in the energy sector, it subsided following interventions by Western allies. Additionally, the latest USDA report highlighted a reduction in U.S. corn and soybean exports. In contrast, European markets reported higher closing prices for key commodities such as mill wheat, corn, rapeseed, and feed wheat.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Monday's trading day brought minuses in America, while pluses in Europe on the crop markets. In Chicago, wheat went up by 0.6 percent, corn by 0.9 percent, soybeans by 1.2 percent, and canola by 1.7 percent, compared to the previous day. In Europe, the course of all four priority agricultural products, mill wheat, corn, rapeseed and fodder wheat, closed in profit. Chicago grain futures fell ahead of this afternoon's grain market report as traders focused mostly on farmer concerns. "The U.S. seeding season isn't off to a fast start, but it's too early to worry too much about delays," said Doug Bergman of RCM Alternatives. "At the same time, excessively wet weather was experienced in the south," he added. They focused on protecting crop prices following the aftermath of last week's Iranian attack on the Israeli border. Karl Setzer of Consus Ag Consulting said that after the consequences of the attack were mitigated by help from Western allies for Israel, the risk premium decreased. ...
Source: AgroForum
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