On Monday, wheat eased amid cheaper Black Sea supplies. Also, the Russian grain slid amid a surge in resources.
The US wheat prices for March delivery fell by 0.87% to $737.25 per metric ton on January 16 closing session.
Also, Euronext commodities shed by 0.70% to €286.75 a ton, the lowest hit since March 2022. Besides, the recent data edged to a ten-month low as strength in the euro and cheaper Black Sea supplies. This kept a lid on prices despite talk of Moroccan demand.
On Tuesday, traders anticipated a grain import tender in Algeria amid Black Sea gauge competition.
The euro reached a nine-month peak, making European wheat more expensive for export. Also, low prices were offered for shipments through Ukraine’s wartime shipping corridor, as traders stated. However, Moroccan demand for Western European supplies was lending support.
Moreover, several cargoes of French wheat were sold for nearby deliveries. Further, traders speculated about six to eight vessels were bought, including some German supplies.
In addition, market participants stated that Morocco acquired 180,000.00 to 240,000.00 tons of milling wheat. The recent arrival of commodities was mainly from France, and some were sourced from Germany.
Russian Wheat Dropped
Besides, analysts said wheat prices slid amid increased competition from other exporters and high supply volumes on Monday.
Moreover, Russian wheat prices tapered to $305.00 per ton for the February delivery. Also, weekly exports dropped to 760,000.00 tons of grain from 970,000.00 a week earlier. Likewise, total wheat delivery is impaired to 670,000.00 tons from the 860,000.00 tons figure.
Furthermore, analysts estimated Moscow’s grain trade stood at 4.10 million tons in January, including 3.70 million tons of commodity supply.
Meanwhile, economists expected a limited impact on winter wheat despite fears that low temperatures could lead to lost crops. Further, experts added that temperatures are rising and expect a lesser impact of the cold snap.
