International Wheat Markets

30-Nov-2024 08:09 AM

International Wheat Markets
Export Sales
The weekly export sales report for wheat, covering the week ending November 21, reveals a significant decline in wheat exports, with sales of only 366,804 metric tons (MT). This is a 33.26% drop from the previous week and marks the lowest sales volume in 9 weeks. The sales fell within the expected range of 200,000 to 600,000 MT, indicating lower demand or slower market activity.

The biggest buyer for this week was an Unknown Destination, which purchased 95,000 MT of wheat, followed by Taiwan, which bought 59,100 MT. This could signal a shift in the market dynamics, with potential changes in purchasing behavior or countries adjusting their wheat stockpiles.

Wheat Production and Planting
On the production side, France, one of Europe's key wheat producers, has made progress in planting its wheat crop. 93% of the wheat crop has been planted as of the latest report, a slight increase from the 90% reported the previous week. However, the quality of the crop has slightly declined, with 87% of the crop being rated as good/excellent, a decrease of 1% from the previous week.

The European Commission has forecasted the EU wheat crop for the 2024/25 season at 112.3 million metric tons (MMT). This is a slight downward revision from their previous estimate, indicating potentially reduced output.

Russian Export Quotas
On the export side, Russia has set a limit on wheat exports, which is expected to have an impact on global wheat supply and prices. From February 15 to June 30, 2025, Russia has announced a wheat export quota of 11 million metric tons (MMT). This is a substantial reduction compared to the 29 million metric tons quota for the same period in 2024, which included other grains such as corn and barley. This decision might be influenced by Russia's own domestic needs, strategic stockpiling efforts, or market adjustments due to global conditions.

Summary
In summary, while export sales are down significantly, especially for the week ending November 21, production and planting activities in major regions like France are progressing well, albeit with some quality concerns. Russia’s export quota reduction could tighten global wheat supplies, adding pressure to the market.