Wheat prices sag, as markets await clear China, Algeria signals

Wheat futures sagged in quiet trade, amid mixed signals from Chinese markets on their return from the week-long lunar new year holiday, and with Donald Trump’s tariff policy and US-Iran tensions still being monitored.

On China’s Dalian exchange, May-26 soybean futures settled 0.5% lower, losing only a small portion of their 6.4% rally in the week running up to the national holiday.

Chinese soybean prices are being closely watched for that Friday’s US Supreme Court ruling against Mr Trump’s tariffs would, in weakening his hand in trade negotiations, hurt prospects for Chinese purchases of US soybean exports.

While China has a large soybean import needs, it is viewed as having substantial volumes ordered, and can buy more cheaply from Brazil, which is offering the oilseed $42/t cheaper FOB.

Markets are also awaiting clarity on suggestions that China may be poised to step up imports of cereals including corn and wheat. Dalian corn futures for May-26, having risen by 2.0% in the week before the holiday, added a further 0.6% on Tuesday.

With oil markets little changed – Brent crude trade 0.3% lower – and a modest newsflow on ags themselves, grain futures proved reluctant to move too far.

While Algeria was reported to have bought wheat at tender, at $259-260, c&f, up from about $254/t at the January tender, a lack of firm detail on the purchase diminished its market impact.

Paris milling wheat futures for May-26 traded 0.3% lower in late deals, while London feed wheat for May-26 shed 0.4%, although remained above its 50-day moving average, which it ended above in the last session for the first time in three months.

Chicago soft red winter wheat for May-26 stood unchanged, remaining close to eight-month highs, spot basis, although hard red winter wheat for May-26 shed 0.7%, weighed by hopes of early-March rains in its key southern Plains growing area, where dryness has been spreading.

Paris rapeseed for May-26 edged up 0.2%, remaining just above the €490/t mark, buoyed by continued firmness in Chicago soyoil prices, which is showing signs of spreading to European rapeseed oil too.