SovEcon: Russian and global grain market news – March 07, 2024

Daily news and market insights from a leading firm focused on the Black Sea grain markets research

On Wednesday, wheat futures continued their decline, with the May SRW contract closing at $5.31/bu ($195/mt; -3.6% compared to Tuesday). May Euronext wheat dropped to €188.50/mt ($205/mt; -0.9%). The May corn contract rose to $4.29/bu ($169/mt; +0.6%).

Chicago and Paris wheat prices hit new contract lows of $5.29/bu and €188.0/mt, respectively, during trading. Fund sales continued to exert pressure on U.S. wheat, with open interest in the May contract increasing by 2,000 contracts to 207,000 on Tuesday. Check out Ad Hoc Commentary of Andrey Sizov to find out more.

Corn prices were supported by bullish market expectations ahead of the new WASDE report.

The La Niña weather phenomenon has a 77% chance of returning to Argentina in October, according to Rosario exchange analysts. Over the past three years, La Niña has significantly reduced the corn and soybean harvest in the country.

On Wednesday evening, Odessa port infrastructure was hit by a missile strike. At that time, a meeting between Ukraine’s President Volodymyr Zelensky and Greek Prime Minister Kyriakos Mitsotakis was taking place nearby.

Ukraine’s grain exports in March totaled 774,000 metric tons, up from 641,000 metric tons a year earlier, reported by the Ministry of Agrarian Policy and Food.

Ukraine is ready to accept temporary trade restrictions with the EU to ease tensions, said Deputy Minister of Economy of Ukraine for Trade Taras Kachka. Meanwhile, Ukraine expects exports to be banned from Russia as well.

Egypt’s GASC will hold a tender on March 7 for wheat supply with payment deferrals of 180 and 270 days.

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