Wheat Prices Face Pressure Amid Black Sea Tensions and Concerns over Shortening Depths

This week in agriculture kicks off with apprehensions over tensions in the Black Sea region and concerns about the impact on wheat prices, starting the narrative in green hues. Demand remains relatively subdued, with China canceling approximately one million tons of Australian wheat purchases last week. Algeria has set sail to acquire soft and durum wheat. Tofio Catön, Director of Agrifood Cooperatives for Cereals, suggests that we must wait and see what the demand trend will be this week.

Spring begins on Thursday in spain , with weather always at the forefront. As the market and demand horizon evolve, the 2024 harvest is already on the horizon.

In Europe, a fierce competition ensues for market capture, as there is still much to be exported, particularly in France and the Black Sea region. Ukraine, having exported 32.4 million tons of grain so far in this campaign, compared to 35.8 million tons in the same period last year, faces off against an export surplus of 50 million tons for the 2023/24 season. Meanwhile, FranceAgrimer predicts that stocks in France for the 2023/24 season will reach 3.74 million tons, marking the highest figure in the past 19 years with an increase of W47 compared to the 2022/23 season.

Corn also starts the week on an upward trajectory. The planting rate for Safrinha in Brazil stands at 9,694 compared to 9,084 the previous year, benefiting from favorable moisture conditions.

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Currently, Ukraine stands as the main source of corn imports. Catön notes that Ukraine has exported 17.4 million tons of corn so far in March, leading to the conclusion that we need to be vigilant about what is happening in the Black Sea region.

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