Following Algeria’s recent tender, wheat futures on global exchanges continued their downward trend, experiencing a decline of 1-3.9%. This decline comes despite increased purchases by major importing nations, indicating ongoing market dynamics.
During two trading sessions, wheat futures in Kansas and Chicago plummeted by 4.4% and 6.3%, respectively, while on the European exchange, they saw a decrease of 2.5%.
Yesterday, May futures for wheat recorded the following declines:
- Soft winter SRW wheat in Chicago dropped by 3.9% to $195.1/t
- Hard winter HRW wheat in Kansas City decreased by 2.4% to $204.4/t
- Hard spring HRS-wheat in Minneapolis fell by 1.6% to $237.1/t
- Wheat futures on Paris Euronext dipped by 0.9% to €188.5/t or $205.5/t
The Algerian State Food Procurement Agency (OAIS) recently concluded a tender, purchasing approximately 870,000 tons of Black Sea soft wheat for delivery in June at a price ranging from $227.75 to $228 per ton C&F. This purchase marks another victory for Russian grain, underscoring the competitiveness of Russian wheat in traditional markets.
Meanwhile, South Korea’s Major Feedmill Group (MFG) secured 60,000 tons of feed wheat for delivery in July through private negotiations, highlighting fluctuations in market prices.
Despite forecasts indicating reduced harvests in importing countries like Morocco, where drought conditions have significantly impacted wheat production, the market response has been muted. Similarly, Indonesia anticipates increasing its wheat imports by 5% in 2024 due to rising demand for flour and animal feed.
As Indonesia remains one of the world’s largest wheat importers, sourcing from countries such as Australia, Canada, the USA, and the Black Sea region, market dynamics are expected to continue evolving in response to global agricultural trends.
Source: GrainTrade