Market update week 3
Macroeconomic trends are adding to market volatility. The euro strengthened against the dollar, climbing to 1.03 from 1.02 before, putting downward pressure on Euronext-traded commodities. Geopolitical uncertainties are also on the horizon, particularly with the upcoming inauguration of Donald Trump as the 45th President of the United States in five days. The initial policies he is expected to implement could introduce significant disruptions to agricultural markets.
Macroeconomic trends are adding to market volatility. The euro strengthened against the dollar, climbing to 1.03 from 1.02 before, putting downward pressure on Euronext-traded commodities. Geopolitical uncertainties are also on the horizon, particularly with the upcoming inauguration of Donald Trump as the 45th President of the United States in five days. The initial policies he is expected to implement could introduce significant disruptions to agricultural markets.
According to the Ukrainian Agriculture Ministry, wheat exports have reached 10.26 million tons so far this season, up from 8.19 million tons during the same period last year. This represents 63% of the annual quota of 16.2 million tons. In contrast, Ukrainian corn exports stand at 10.58 million tons, slightly lower than the 11.01 million tons recorded at the same point last season.
According to the Ukrainian Agriculture Ministry, wheat exports have reached 10.26 million tons so far this season, up from 8.19 million tons during the same period last year. This represents 63% of the annual quota of 16.2 million tons. In contrast, Ukrainian corn exports stand at 10.58 million tons, slightly lower than the 11.01 million tons recorded at the same point last season.
Corn prices have continued their upward trajectory, driven by revised USDA data released last Friday. This has triggered renewed fund purchases, pushing March 2025 futures in Chicago above $4.75 per bushel, their highest level in over six months. Wheat prices have followed suit, although the dynamics for SRW wheat remain notably different. While corn has shown a strong recovery, wheat has struggled to break above $5.45 per bushel and has been confined to a narrow trading range since the beginning of January.
Corn prices have continued their upward trajectory, driven by revised USDA data released last Friday. This has triggered renewed fund purchases, pushing March 2025 futures in Chicago above $4.75 per bushel, their highest level in over six months. Wheat prices have followed suit, although the dynamics for SRW wheat remain notably different. While corn has shown a strong recovery, wheat has struggled to break above $5.45 per bushel and has been confined to a narrow trading range since the beginning of January.