Low dollar bad for grain export Europe

On the American stock exchange, the sentiment was moderately positive in the last trading session, while in Europe grains closed in the red. That is the effect of the decline of the dollar. Furthermore, new yield figures were released from the United Kingdom and Argentina. The March contract for wheat on the Matif closed yesterday €1.50 lower at €188.50 per tonne. On the CBoT, wheat showed a slight increase of 3¼ cents to $5.34½ per bushel. Corn moved more sideways and ultimately closed ½ cent higher at $4.35¼ per bushel. Soybeans closed just like the grains in the green with an increase of 2¼ cents to $10.93½ per bushel. A lower dollar exchange rate and demand from China made the mood on the Chicago exchange a bit more positive. It was announced yesterday that China has placed an order for 264,000 tonnes of American soybeans this time. Due to large stocks hanging over the market, enthusiasm is not as high as one would expect according to some analysts. That the dollar has fallen to its lowest rate in a month and a half is not good news for European exporters. Due to strong competition from wheat from the Black Sea region, European exporters are already in a somewhat difficult position, and this is not improved by competition from the US. Demand from Tunisia Ukraine is also struggling to find customers for wheat. This season, Ukraine has exported 7.52 million tonnes of wheat compared to 9.18 million tonnes during the same period last season. More positive news came from Tunisia. That country bought 125,000 tonnes of soft red wheat, 100,000 tonnes of durum wheat, and 125,000 tonnes of barley for delivery in January and February in a tender. The countries of origin have not yet been disclosed at the time of writing this article. The grain exchange in Rosario raised its forecast for the wheat harvest in Argentina further to a record harvest of 27.7 million tonnes. Last year, Argentine farmers harvested a total of 24.5 million tonnes. The exchange does not comment on the quality of the wheat, but various sources suggest that it is disappointing and combined with the good harvest causes price pressure. In the UK, farmers harvested 11.96 million tonnes of wheat last season, according to new figures from the UK Ministry of Agriculture. This year's harvest is 7.3% larger than last year. The yield is on average 7.2 tonnes per hectare, which is 1.7% lower than last season. Due to an expansion of the area by 9.1% to 1.7 million hectares, the total harvest has turned out to be larger.