It is the 5th consecutive week that the wheat price has fluctuated around this level.
In April, wheat became more expensive as food was being hammered due to the corona crisis. Concerns about the drought also increased. But now it has started to rain around the Black Sea. That will keep the wheat price stable for the time being.
In April, wheat became more expensive as food was being hammered due to the corona crisis. Photo: Henk Riswick
Drought in large parts of Europe
The wheat price also remains stable on the futures market in Paris. The September contract has been fluctuating between € 184 and € 190 for a month. The trade is waiting to see how the growing season will develop. It is dry in large parts of Europe. Wheat and barley in particular have visible drought damage. It has started to rain in various regions of Europe, but market experts expect that the drought will have a depressing effect on the hectare yields. Nevertheless, the wheat price remains stable because the production expectations in the Black Sea region look a bit better because of the rain.
Price of corn higher due to drought
A lot corn in Europe has been sown in dry soil. Rain is urgently needed to get this corn going. Failure to produce precipitation will have an effect on maize production. The EU is a major importer of corn. About a quarter of the corn requirement has to be imported into the EU. If it’s own production is disappointing, the prices will rise quickly. On the futures market in Paris, the August contract is above € 170 per tonne, the highest level in almost 2 months.
Overview of futures prices for: corn, wheat and soybean
This week the forecast is: Wheat price remains stable.