COTidienne | Cereals – Saudi purchase of soft wheat supports wheat prices

THE prix wheat gained 4 €/t on Euronext between December 13 and 16, supported by a Saudi purchase of 800,000 t for which European origins would potentially have been selected. This important purchase ofSaudi Arabia indirectly supported wheat prices in Minneapolis and Kansas City, while those on the CBOT fell slightly. THE markets French physical stocks followed the Euronext rise in soft wheat and feed barley.
Corn quotations also increased on Euronext and the CBOTbut to a lesser extent, thanks to technical purchases and the attractiveness of the United States origin for export.

To find out everything about agricultural market news, click here

The purchase of the Saudi GFSA shook the markets yesterday, with a volume well above the 595,000 t of wheat initially required in the call for tenders. There Russia should be little present, with Russian prices up $6/t C&F, according to the Ikar firm. Russian exports are also expected to decline in December, according to SovEcon. Uncertainty over Russian export taxes and the imminent implementation of quotas in February have given way to Western European, Romanian, Ukrainian and Argentinian origins, according to the Lachstock Consulting firm. L'North America and theAustralia should be absent. This stimulated price increases in Europe, but also in the United States. Even if this origin should not a priori be accepted, the abundance of contracted volume still had an impact on the prices of winter and spring wheat.
Remember that Russia should suspend its wheat exports to Syriadue to uncertainties over payment for imported volumes. Two ships bound for Syria have been rerouted, Reuters reports. The Ukrainian president announced that his country could take over and supply Syria with grain as part of the Grain from initiative Ukraine.

Algeria has published a call for tenders for durum wheat worth 50,000 t for delivery around March-April.

In butthe market was less turbulent. Good growing conditions in South America continue to weigh on global prices, with rain expected in Argentina and Brazil. In the United States, export figures supported prices.

The AHDB published its supply and demand reports in United Kingdom for the 2024-2025 cereal campaign, marked by the drop in the wheat harvest which fell 21% in volume from one year to the next. Barley and oat production, however, is estimated to increase in 2024. The drop in harvest should ration demand, particularly in milling, and more abundant early season stocks and imports should not be able to avoid the tension on the British market.

To find out everything about the latest news from professionals in the grain sector, click here

Fundamentals:

• United Kingdom, cereals, consumption : 24.18 Mt in 2024-2025, i.e. 2% decrease compared to 2023-2024 (source: AHDB)
• United Kingdom, wheat, imports : 2.75 Mt in 2024-2025, i.e. 13% more than in 2023-2024 (source: AHDB)
• United Kingdom, cereals, end of season stocks : 5.39 Mt, i.e. 14% decrease compared to 2023-2024 (source: AHDB)

Commerce international :

• Saudi Arabia, wheat, purchase : 804,000 t of hard wheat, optional origin, $268.87/t C&F on average, delivery February-April 2025 (source: Reuters)
• Russia, wheat, exports : 3.5 Mt in December compared to 3.7 Mt in December 2023 (source: SovEcon)
• United States, soft wheat, weekly export inspections : 298,075 t the week ending December 12 (source: USDA)
• United States, corn, weekly export inspections : 1,129,834 t the week ending December 12 (source: USDA)

French physical markets from December 16, 2024 (July base for cereals)

Quotations of milling products from December 10, 2024

Commercial quotes for dairy products from December 12, 2024

Dollar/euro evolution of December 16, 2024

Chicago Futures Market Closes December 16, 2024

Closing of the Euronext futures market on December 16, 2024

International market quotes from December 16, 2024