PARIS/SINGAPORE: US and European wheat futures extended gains on Friday, led by fresh contract highs in Paris, after steep cuts to world supply in a US government report fueled concern about dwindling availability in major export zones.
Corn and soybeans edged up as investors assessed the US Department of Agriculture’s sharper than expected reductions to US yields against the agency’s lower demand projections.
In its widely followed monthly crop outlook on Thursday, the USDA surprised the market by slashing projected world wheat supplies, notably due to a combined 20 million ton cut to expected production in Russia and Canada. The USDA also reduced its estimate of US production to a 19-year low due to adverse weather.
“The market found a new factor of tension with the strong cuts to production in the main exporting countries,” consultancy Agritel said of the USDA report.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was up 1.4 percent at $7.64-1/4 a bushel by 11:11 a.m. GMT, near an earlier three-month peak. Euronext futures showed sharper gains, drawing additional strength from weak milling quality in a rain-hit French harvest. December wheat on Euronext was up 2.7 percent at a new life of contract high of 255.50 euros ($300.16) a ton.
Grain group Soufflet said on Thursday only about a third of soft wheat it has collected so far in France was meeting a key milling standard. CBOT corn was up 0.2 percent at $574.50 a bushel, while soybeans added 0.9 percent to $13.53-1/2 a bushel.
Corn had rallied on Thursday on the USDA’s reduced forecast for US yields, although as in soybeans the USDA trimmed demand projections. The export outlook for US soybeans has been clouded by signs of slowing Chinese demand. However, analysts still see global supplies remaining relatively tight.
“Modest demand rationing — especially in soy — may deliver a softer landing for G&O (grains and oilseeds) supplies, but it will be tough to materially raise carry-out (stocks) over the next year or two, raising prices risks for consumers across the board,” Rabobank said in a note.
Wheat hits new highs as USDA stokes world supply worries
https://arab.news/4b2yy
Wheat hits new highs as USDA stokes world supply worries
- Paris wheat at new contract highs, CBOT wheat at new 3-month top
- USDA's steep world supply cuts fuelled rally in wheat market
Closing Bell: Saudi main market sheds 85 points to finish at 11,098
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower in the latest session, falling 85.79 points, or 0.77 percent, to finish at 11,098.06.
The MSCI Tadawul 30 Index declined 0.63 percent to close at 1,495.23, while the parallel market index Nomu dropped 0.91 percent to 23,548.56.
Market breadth was firmly negative, with 42 gainers against 218 decliners on the main market. Trading activity saw 226 million shares exchanged, with total turnover reaching SR4.5 billion ($1.19 billion).
Among the session’s gainers, Tourism Enterprise Co. rose 9.40 percent to SR15.02. SHL Finance Co. advanced 4.51 percent to SR16.00, while Almasar Alshamil for Education Co. gained 3.56 percent to SR23.88.
Dar Alarkan Real Estate Development Co. added 3.03 percent to SR19.70, and Banque Saudi Fransi climbed 2.61 percent to SR19.30.
On the losing side, Almasane Alkobra Mining Co. recorded the steepest decline, falling 6.61 percent to SR96.
Al Moammar Information Systems Co. dropped 5.14 percent to SR164.20, while National Company for Learning and Education declined 4.60 percent to SR124.30. Saudi Ceramic Co. slipped 4.14 percent to SR27.30, and Arabian Contracting Services Co. fell 4.12 percent to SR116.50.
On the announcement front, Saudi Telecom Co. announced the distribution of interim cash dividends for the fourth quarter of 2025 in line with its approved dividend policy.
The company will distribute SR2.74 billion, equivalent to SR0.55 per share, to shareholders for the quarter.
The number of shares eligible for dividends stands at approximately 4.99 billion shares. The eligibility date has been set for Feb. 23, with distribution scheduled for March 12.
The company noted that treasury shares are not entitled to dividends and that payments will be made through Riyad Bank via direct transfer to shareholders’ bank accounts. stc shares last traded at SR44.80, unchanged on the session.
Separately, National Environmental Recycling Co., known as Tadweer, reported its annual financial results for the year ended Dec. 31, 2025, posting significant growth in revenue and profit.
Revenue rose 53.5 percent year on year to SR1.24 billion, compared with SR806 million in the previous year. Net profit attributable to shareholders increased 68.4 percent to SR60.9 million, up from SR36.2 million a year earlier, driven by higher sales volumes and operational expansion.
Tadweer shares last traded at SR3.80, up 2.70 percent.
