Wheat

Wheat futures at the end of 2022 are 3,5 to 24 percent above the level of the previous year


Wheat futures on US exchanges ended the past week and year up slightly on speculative buying, widening the yoy gap.

So, on December 31st they went up in price:

  • up 2,3% or $6,61/ton to $291/ton – Chicago Soft Winter SRW Wheat Futures in March (+3,5% for the year),
  • up 2,5% or $7,9/tonne to $326,3/tonne - Kansas City Hard Winter HRW Wheat Futures in March (+11% for the year),
  • Up 2,7% or $9,09/tonne to $344,9/tonne are March futures for HRS summer hard wheat in Minneapolis (+6% for the year).

At the same time, January black sea wheat futures in Chicago remained at $308,25/ton, almost the same as last year.

March wheat futures for Paris Euronext ended the year at €309,25/tonne or $329,8/tonne (+24% for the year).

Data on the fall in Argentina's wheat production weighed on the market. According to the BAGE exchange, 2022 million tons will be in 23/9,3 Wheat with a yield of 2,23 tons/hectare of 91,4% of the area milled. Grain exchange Rosario has cut its wheat harvest forecast by 2,5% to 11,5 million tons due to the drought, while WASDE estimated it at 12,5 million tons in December, compared to 22,15 million tons in 2021/22 . Wheat exports from Argentina will fall to 2022 million tons in 23/15,3 compared to the previous season, which would be an 6-year low.

Brazil, which is the top importer of Argentine wheat, is reaping a record-breaking wheat crop in just its second year. According to Conab, production in 2022 increased by 24% compared to the previous year to 9,5 million tons, including in the states of Parana and Rio Grande do Sul (where 86% wheat is grown) by 9% to 3,5 million tons and 36 million tons respectively. by 4,7% to XNUMX million tons. Farmers in these states are expected to continue planting wheat seed acres next season amid a bumper harvest.

December export sales of wheat from the USA 43% to 478 thousand tons, reaching a total of 14,922 million tons for the season, up 6% from last year's level, according to USDA data for FAS week December 16-22.

Source: UkrAgroConsult (Ukraine)

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