Export Records Impacting Global Wheat Prices
The wheat market is witnessing fluctuations, with record-breaking exports in March exerting pressure on global prices. On Wednesday, wheat exports from Mar Negro for April shipments, with a protein content of 11.5%, were priced between $201 and $210 FOB.
Russian Restrictions on Wheat Exports
Russian authorities have halted grain exports from some ships belonging to Aston, one of the largest local grain trading companies. This action follows an expanded quality investigation that has already limited exports from another major trader. A significant disruption in Russia’s exports could lead to a surge in global prices.
US Winter Wheat Harvest at Five-Year High
The US Department of Agriculture (USDA) has evaluated the US winter wheat harvest at its highest level in the past five years. Increased rainfall in the southern Plains wheat belt is expected to boost the harvest.
Corn Prices Rise Due to Short Positions
Corn prices rose in the US due to the closure of short positions formed before the start of the planting season. Potential risks associated with planting disruptions due to adverse weather conditions are also supporting prices. Investors are heavily investing in corn, which is reflected in the support for prices, reaching the lowest level in the past month.
Market Trends and Forecast
On Wednesday, all funds were net buyers of futures contracts for corn, wheat, soybeans, soybean oil, and soybean meal at CBOT.
Impact of Weather Conditions
Rain and snow in the central corn belt are expected to increase soil moisture reserves. Forecasts suggest higher temperatures towards the end of the month.
Drought Affects Panama Canal
S&P Global announced on Wednesday that drought conditions have forced restrictions on daily transits through the Panama Canal. This could impact global supply chains during a period of high demand.
Durum Wheat Imports and Tenders
Importers are grappling with reduced supplies following drought conditions in Canada, but increased sales from Turkey have helped alleviate the issue. Tunisia has announced tenders for 50,000 tons of durum wheat, following previous purchases at $414.68/ton CIF. Additionally, Tunisia is tendering for 50,000 tons of bread wheat, following a previous tender where approximately 100,000 tons were purchased at $238.88/ton CIF.