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Global: Wheat futures on Euronext rose to a 14-month high, supporting prices in Ukraine

Published May 29, 2024

Tridge summary

On Memorial Day, U.S. stock exchanges were closed, but in Paris, wheat prices surged due to predictions of decreased harvests in Ukraine, Africa, and Russia. The rise in prices is attributed to drought in North Africa, decreased production in Russia, and lower forecasts for Ukraine's grain and oilseed crops, leading to increased import needs. September wheat futures on Paris Euronext experienced a nearly 3% increase, reaching a 14-month high of €269/t or $292.6/t. The article also mentions a slight increase in the EU's wheat yield estimate for 2024, but concerns about Russia and Ukraine offset this optimism, resulting in reduced export forecasts for both countries. Ukraine's export purchase prices for wheat have also increased due to the dollar exchange rate. Potential rainfall in Ukraine and southwest Russia could impact the harvest projections.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

On Monday, stock exchanges in the United States were closed for the celebration of Memorial Day, while on the exchange in Paris, wheat prices continued to rise rapidly on forecasts of reduced harvests in Ukraine, African countries and the Russian Federation. According to the MARS monitoring data of May 27, drought in western North Africa, especially in Morocco and northwestern Algeria, will lead to a sharp decrease in wheat yields, which will increase the need for imports. September wheat futures on Paris Euronext rose nearly 3% yesterday to a 14-month high of €269/t or $292.6/t (+4.9% for the week, +14.3% for the month). Traders are worried about forecasts of a decrease in wheat production in Ukraine and the Russian Federation, so they have not yet reacted to the MARS experts' increase in the estimate of wheat yield in the EU in 2024 to 5.71 t/ha compared to 5.65 t/ha on average over 5 years. For the fourth time in a month, IKAR analysts lowered forecasts for the grain harvest in ...
Source: Graintrade
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