On Monday, wheat prices lowered as the European area closed near a three-week low amid stronger-than-expected forecasts of US corn planting.
Wheat futures for September delivery went down by -0.54% to $646.50 per metric ton on July 03’s Asian afternoon session.
Paris-based Euronext crop dropped by 1.10% to $251.82 a metric ton. The strength in corn planting negatively affected the cereal markets.
During June, it experienced a 5.70% rise after a volatile month. It was its highest level since April before prices fell this week.
Moreover, the projected corn data from the US Department of Agriculture (USDA), hitting over market estimates, dragged wheat lower. On the other hand, it steered attention away from the lower-than-expected quarterly grain stocks.
Additionally, the European Commission slashed its monthly consensus for 2023/24 production down to 128.90 million metric tons.
Furthermore, Russian export competition continued to hang over the market, aggravated by a drop in the rouble. According to traders, they cannot compete against the current prices for their wheat export markets.
In France, soft wheat crops’ condition declined for the fifth week. However, it is still above the previous year’s level, as stated by analysts. Also, Chinese buyers hinted interest, but traders did not gain enough clarity about the deals.
Morocco Wheat Production to Increase
Morocco is preparing for a big boost in wheat production with a 62.00% forecast increase for the 2023/24 marketing year.
The higher production outlook resulted from the end of a long-term drought that affected the country’s agricultural sector.
Morocco is anticipated to produce around 3.00 million tons of common wheat and 1.00 million tons of durum wheat. The data is from the Global Agricultural Information Network.
Despite the figures showing a significant improvement from the years of drought, the estimated outputs are still below historical averages.
In addition, duties on the commodity will stay discarded until the end of 2023 to boost stock building. Also, they are aiming for sufficient supplies in the market.
