Wheat markets have endured a volatile week of trading, as traders and speculators reacted to the uncertainty of the latest Covid-19 variant Omicron and what it might bring. Having peaked at nine-year highs last week, Chicago Board of Trade (CBOT) wheat futures lost over 10% of their value by close of business on Tuesday. This was due to a wave of panic selling, which caused prices to tumble. European wheat futures made similar losses from their record highs last week.

However, the tight world wheat balance sheet and the availability of milling wheat from the world’s major wheat exporters remain a concern. The lower wheat prices led to several of the world’s major importers issuing fresh wheat tenders, the most significant of those from Egypt. Egypt bought 600,000 tonnes, including 240,000 tonnes from Russia and 240,000 tonnes from Romania. The final 120,000 tonnes it purchased from Ukraine. Prices ranged from $376-379/t including freight for January delivery and, on average, represented a $6/t increase in price over the solitary cargo Egypt bought from Romania on the 17th November. 

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