All eyes have been on Ukraine this week, and as tensions build, consumers moved to increase cover and wheat markets gained support, following the similarities of 2013/14.
While the tension and rhetoric continues, some of the initial excitement in wheat markets has faded, said the CRM Agri team.
Grain market watchers should continue to keep a close eye on Ukraine in the coming weeks, however, cautioned the analysts.
While a lot of the focus has been on wheat this week, soybean markets have continued to make gains, they said. “Aided by crude oil continuing to trend higher, and the overall vegetable oil complex receiving support, May Chicago soybeans have continued to test new contract highs.”
South American weather also continues to play a role in market direction and supply confidence, for both soybean and corn crops.
“Weather conditions in Brazil and Argentina have, on the whole, eased recently, but with a prolonged drought period, yield estimates are continuing to be downwardly revised.”
US export data
Weekly US export sales have been positive for wheat, corn and soybeans, reported the CRM Agri team.
US weekly wheat export sales reached a marketing year high last week, totaling 676.7kt. Exports of 360.9Kt were however down 8% from the previous week, but still up 21% from the prior 4-week average, they said.
In terms of corn, exports of 1.4Mt were up 11% from the previous week. Exports of soybeans were at 1.6Mt, down 12% from the previous week, but up 1% from the prior 4-week average, noted the analysts.