Andrey Sizov
10.10.2024
On Wednesday, U.S. wheat futures rose. The December SRW wheat contract closed at $5.99/bu ($220/mt), up 0.7% from Tuesday. The December HRW wheat contract in Kansas increased to $6.09/bu ($224/mt), up 0.8%. The December Euronext wheat contract closed at €228.75/mt ($254/mt), down 0.4%. The December U.S. corn contract fell to $4.21/bu ($166/mt), down 0.3%.
The Rosario Grain Exchange in Argentina lowered its wheat production forecast to 19.5 million mt, 1.0 million mt below its previous estimate. The forecast was revised due to ongoing dry weather in the country.
The U.S. Department of Agriculture (USDA) reported export sales of 126,000 mt of corn to unknown destinations.
Turkey will reduce the import tax on corn to 5% for a total of 1 million mt of grain imports by the end of the year, the country’s Ministry of Trade announced. After reaching the agreed volume, the tax will return to 130%.
Algeria could purchase up to 3 million mt of Russian wheat this season, representatives of Russia’s trade mission in Algeria reported.
Algeria banned French suppliers from participating in Tuesday’s wheat tender, Reuters reported, citing sources.
On Friday, the USDA will release the WASDE report. Market analysts expect U.S. corn stocks to decline by 3.0 million mt from September to 49.3 million mt, while global corn stocks are forecast to drop by 0.9 million mt to 308.7 million mt. U.S. wheat stocks are expected to decrease slightly by 0.2 million mt to 22.3 million mt, with global wheat stocks falling by 0.3 million mt to 265.0 million mt.
Russian 12.5% wheat prices rose by $3 to $222-224/MT FOB last week, marking the highest level since late June, SovEcon said in a report. This week, according to traders, prices reached $230/MT. The uptick in prices was supported by an increase in futures prices and a historically high export pace.
