Andrey Sizov
24.01.2025
Mixed dynamics observed in grain markets on Thursday. The March SRW wheat contract closed at $5.54/bu ($204/mt; unchanged from Wednesday). The March HRW wheat contract in Kansas dropped to $5.71/bu ($210/mt; -0.7%). The March Euronext wheat contract closed at €230.25/mt ($240/mt; +0.1%). The March U.S. corn contract rose to $4.90/bu ($193/mt; +1.1%).
The Rosario Grain Exchange lowered its forecast for Argentina’s corn production by 1 million mt to 49.0 million mt due to dry weather.
The share of Argentine corn crops in poor condition rose to 20%, up from 14% the previous week and 6% last year, amid ongoing dry weather. Crops with optimal soil moisture accounted for 59%, down from 64% a week earlier and 87% a year ago.
The Argentine government has reduced export duties on key crops, including corn and wheat. The export duty for both grains has been lowered to 9.5% from 12%. The reduced rates will remain in effect until June. According to Economy Minister Luis Caputo, the decision reflects solidarity with farmers amid the current challenging circumstances.
India plans to increase agricultural sector funding by 15% to $20 billion, Reuters reported, citing sources. Additional funding will focus on breeding projects as well as the development of grain storage and logistics infrastructure.
SovEcon has left its forecast for Russia’s 2025 wheat production unchanged at 78.7 million metric tons (MMT), down from 82.4 MMT last year. While the anomalously warm weather has not yet caused significant issues for plants, the associated risks remain elevated.
