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Demand for grains increased from mid-March as private individuals and countries started to build strategic inventories. The wheat market benefited most from this renewed demand, Casper Burgering from ABN Amro reports.

Key quotes 

“The availability of wheat  remains good for the time being. Only the risk of adverse weather can change this expectation.”

“The relatively lower oil and ethanol price will ultimately result in a loss of demand for corn. (…) Prolonged high availability together with the drop in demand from the ethanol market implies further pressure on the price of corn.”

“Supply chain problems are set to increase with the further spread of the coronavirus in both the US and Brazil. The two countries have a combined share of almost 85% of the soybean export market. If the coronavirus slows soybean trade flows, it will become very difficult for China to source this commodity.”