Oversupply weighs on wheat prices in January

February 3, 2023

1 mins read

Supply pressure from a higher-than-anticipated Australian crop and a continued supply of wheat from the Black Sea, together with a favourable weather forecast in Argentina at the end of the month, weighed on wheat prices in January. The Euronext milling wheat futures MAR-23 contract price fell by 5.3% month-on-month (m-o-m) to € 284.5/mt on 31st January 2023.

The European wheat price moved to its lowest level since late February 2022, when the war between Russia and Ukraine started. A Mintec source noted, “the market looks well-stocked for now.” Thus, demand for wheat in the EU market has been lacklustre. In addition, there is still a significant slowdown in shipments via the grain corridor deal. A Mintec source added, “there are currently delays of up to 45 days in the grain corridor. The concern now surrounds the extension of the grain corridor deal.”

On another note, in the EU, winter wheat plantings are progressing in line with estimates. The potential shortage of fertilisers will continue to create concern for the 2023/24 EU crop yield. Also, the expected low planted areas for Ukraine’s 2023/24 crop will cause an element of fragility in the 2023/24 season at both world and EU levels.

Topics: Grains & Feed
Zanna Aleksahhina
Zanna Aleksahhina

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