Global wheat market weekly analysis, February 23, 2024

Published Feb 24, 2024

Tridge summary

Northern Europe is experiencing cold weather while Southeast Europe is warmer. Wheat prices in the Black Sea region, including Russia, are falling due to low demand, hitting a 4-year low. This, along with high EU stocks, has led to a 2-year low in MATIF wheat futures. In contrast, U.S. wheat futures have risen after reaching their lowest levels since 2024. Ukrainian grain exports have decreased, particularly through the port of Constanta, with total exports for the season at 26.47 Mt, including 10.3 Mt of wheat. The future direction for wheat prices is expected to continue to decrease due to strong sales competition from the Black Sea region and a potential downward adjustment of the 'price floor' by the Kremlin.
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

The weather Since the beginning of the year, cold weather has prevailed in Northern Europe, while the Southeast has enjoyed warmer than usual temperatures. North-western, central and eastern Europe saw significant rainfall, while the Mediterranean region remained dry and drought deepened again in many places. In countries such as Hungary, Slovenia, Croatia, Bulgaria, Romania, southern Ukraine, southern Russia and Turkey, mild conditions prevailed, which favored the development of late-sown winter crops, but at the same time increased the risk of frost due to reduced tolerance to low temperatures. MATIF prices Highlights of the week Black Sea wheat continued its downward trend this week, with prices for Russian wheat with 12.5% protein quoted at $220-226/t FOB due to a lack of serious demand, and deals around $215/t are not out of the question. Market sources report that spring sowing has already started in the southern regions of Russia. MATIF ...
Source: Agroportal
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