World grain markets regular amid extension of Black Sea deal

The Agriculture and Horticulture and Improvement Board (AHDB) is reporting that world grain markets felt some assist final week general.

US and European wheat markets discovered energy from issues on whether or not there could be an extension of the Black Sea Initiative (Ukraine export deal) which was because of expire final Saturday (March 18), however has now been prolonged.

In the meantime, Chicago maize discovered assist from sturdy Chinese language demand. The place the monetary markets are involved,  issues grew with the US greenback weakening, to some extent, over the previous seven days.

World grain markets

In the meantime, the Black Sea Grain Initiative has reportedly been prolonged for 60 days. That is half the time that the deal has been beforehand renewed for. Nonetheless, the information did act to regular some issues on world provide.

In accordance with AHDB, the brand new deal ought to enable the secure export of Ukrainian grain over the approaching weeks.

Robust demand helped to assist world grain costs final week. Wheat was bought by Algeria (540Kt milling wheat), Tunisia (234Kt delicate wheat) and Jordan (60Kt milling wheat) throughout the interval.

The place US maize is worried, personal exporters recorded 2.111Mt of ‘flash’ gross sales of product to China for supply over the approaching months

New-crop circumstances stay the important thing focus going ahead. Stories of frost and chilly circumstances within the US over the weekend are being investigated.

Some analysts have trimmed their outlook for EU manufacturing of sentimental wheat and exports for this season (2022/2023) and subsequent season (2023/2024).

New season delicate wheat manufacturing is now pegged at 129.5Mt, down from 129.7Mt in February’s forecast, however increased than this season’s crop, now pegged at 125.1Mt.

Regardless of latest rains in western Europe, ranges had not been ample to completely take away long-term drought threat, significantly in France and Spain.

For delicate wheat exports from the EU, these at the moment are pegged at 30.0Mt for this season (2022/2023) and 30.3Mt for subsequent season (2023/2024), down 100Kt and 300Kt respectively from February’s forecast.

UK feed wheat futures noticed strain final week, regardless of US and European wheat markets seeing assist.

For outdated crop costs, futures fell £5.50/t final week, to shut on Friday at £209.50/t. New-crop costs fell solely £1.30/t over this era, to shut on Friday at £218.20/t.

In the meantime, sterling discovered some assist final week, closing increased towards the euro (up 1.06%) and US greenback (up 1.22%).

Additionally it is price noting that the UK has giant wheat availability this season and, accordingly has been setting a robust  export tempo, based on the AHDB.

The most recent commerce information verify that UK wheat exports hit a 40-month excessive in January 2023.