Written Commentary
Ag Market View for Dec 13.24
December 13, 2024
London Wheat Report
Strategie Grains lowered its forecast for soft wheat production in the European Union in 2024 to its lowest in 12 years, the second straight month the crop consultancy has cut the projection due to rain-hit harvests in France and Germany. The firm now estimates the EU’s main cereal crop at 114.4 million metric tons, down 10% from last year and the lowest level since 2012, it said on Thursday in a monthly report.
The Saint Kitts & Nevis-flagged bulk carrier Aya was hit by a Russian missile in the Black Sea, shipping sources said on Thursday, based on initial assessments. The vessel’s last reported position was off the Romanian port of Constanta on Thursday with its status listed as having stopped, ship tracking data showed.
European futures had extended gains on Thursday to a two-month high as news that Egypt bought a large amount of Russian wheat this week reinforced expectations that supplies in the Black Sea export zone are ebbing after a harvest glut. The above news regarding the missile strike may have also leant support the market. The WASDE report was the only thing to spoil the party, dragging the London and Matif down into the red in the final 30 minutes of the session today. The global wheat outlook for 2024/25 is for larger supplies, consumption, trade, and ending stocks. Supplies are projected to increase 1.5 million tons to 1,062.1 million as higher beginning stocks more than offset lower production.
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