Euronext European market

• Soft wheat prices fell again on Euronext. The September 2024 maturity is trading at its lowest level in two months.

Due to the fact that the previous week was dominated by a heatwave, right around the time of harvest, concern among specialists has increased. In this regard, the European yield potential monitoring program MARS again lowered its estimates compared to last month. For common wheat, production potential fell 1% from last month to 5,86 t/ha. For durum wheat, the decrease is more pronounced, of approximately -4% compared to May, with a potential of 3,30 t/ha. Maize potential is also down at 7,55 t/ha.

Production monitoring is obviously essential once the harvest has started. This questioning of volumes and the observed drop in prices is also causing certain importing countries to prepare for purchases, such as Algeria through OAIC and Egypt through goose. Yesterday, the two countries launched two tenders for the purchase of milling wheat.

At the end of the day, oil prices were little changed after a lively session. The harvest situation will allow analysts to determine the actual yield of the existing areas, taking into account the fact that the program MARS revised down its estimate to 3,16 t/h for the upcoming harvest.

Grain prices fell again yesterday in Chicago. In SRW wheat, September 2024 maturity returned to its lowest level since last April, approaching $5,70/bu. In corn, after a session marked by a wide range of variations, prices for old and new crops also returned to their lowest levels since last March. Soybeans, on the other hand, rose, rebounding from recent lows.

Euronext quotes 24.06.2024 (GMT+1)

Wheat (€/t)

Maize (€/t)

Rapeseed (€/t)

Article written by Gabriela Dan, Editor of Arta Albă

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