Written Commentary
London Wheat Report
Steady volumes but an improvement on prices on London wheat today. Both May-25 and Nov-25 contracts dropped prices this morning before recovering and rallying into the close. Paris and US wheat contracts seemed to rally earlier in the day before Paris contracts came back, leaving the American contracts to continue their move into the green.
European wheat had somewhat of a recovery as it filtered from contract lows today, supported by fresh international demand, but a new rise of the euro against the dollar kept a lid on prices.
The front month is May-25. Paris milling wheat was marginally up at the time of the US main session opening, having touched a contract low in the previous session. It ended the day, however, down EUR 1.25. Market participants welcomed new export demand with a purchase tender from Tunisia issued earlier today. With regards to price comparisons, Russian 11.5% protein wheat was still around USD 242-USD 244 a tonne FOB, with French and Romanian wheat around USD 2 cheaper.
News from the southern hemisphere: the Buenos Aires grains exchange in Argentina today announced that the country’s previously forecasted bumper wheat crop could rise even higher if a temporary export tax cut until the end of June is extended. The current estimate of 20.5 mmt could rise if the tax cut is extended, incentivising growers.
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