GRAIN MARKET REVIEW: WHEAT
A weak tone in world wheat markets persisted into 2024. USW said recent cold temperatures across the northern US have hampered rail logistics and demand for HRS wheat from the Pacific Northwest and HRS demand from the Pacific Northwest also provided a bullish influence. USW added that “a recent cold snap in France and Germany likely caused limited damage to waterlogged wheat in fields, with heavy showers that further delayed sowings ahead of this year’s harvest. The United States was also hit by cold weather, affecting major wheat-growing areas.
However, there were divergent trends across US wheat classes, as steady to firmer winter wheat quotations contrasted with net declines for spring wheat, amid talk of competition from Canada, where offers have also eased in recent weeks. With continued worries about export competitiveness, French fob values mostly softened since November. Turning to Russia, supported by currency movements, occasionally reluctant grower selling, and seasonally difficult shipping conditions. Fob prices at Ukraine’s deep-sea ports were thinly quoted, albeit as the seaborne corridor became the main route for exports, pressuring freight costs for land and river deliveries.
“Soft Red Winter (SRW) dropped $14 to $259/tonne on slowing demand from China,” the FAS said. “Hard Red Spring (HRS) prices declined $14 to $304/tonne, reflecting stronger competition from Canadian spring wheat.” The FAS also reported Hard Red Winter (HRW) down $9 to $285/tonne, “reflecting recent precipitation in the HRW belt and favorable growing conditions compared to last year.” “Major exporter quotes are largely unchanged since the December WASDE,” the FAS said. “EU and Russian quotes have converged in tight competition. EU quotes eased by $5/tonne, while quotes from Russia edged $5/tonne higher amid strong overseas shipments.”
(Link: WorldGrain)
