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Drought concerns support wheat prices

Drought concerns, especially in Europe, support wheat prices.

Drought

In France it will remain dry and the barley harvest will start this week. Due to the drought, prices are rising slightly this week at the grain exchange in Groningen, the Netherlands. For both feed wheat and feed barley, € 1 was higher at € 192 and € 168 per tonne, respectively. Trading on the futures market in Paris at the beginning of this week was moderate due to the long Pentecost weekend. And on the international market, tensions are mounting between the United States and China. The Chinese authorities have asked major importers not to purchase products of American origin.

In France the barley harvest will start this week. Due to the drought, prices are rising slightly. Photo: ANP
In France the barley harvest will start this week. Due to the drought, prices are rising slightly. Photo: ANP

Excellent crop condition for US maize

The sowing work for corn in the United States is progressing well. At the end of May, 93% of the American corn had been sown. This makes the sowing work slightly ahead of the multi-year average. Three-quarters of the crops are in excellent condition, as the weather conditions have so far been excellent in the important growing regions. The weather in the Midwestern United States is looking good for the next few weeks. It is expected to get warmer with slightly above average rainfall, which is beneficial for the sown corn. The large expected corn stock keeps the corn prices fairly stable. In the Chicago futures market, its first-term contract (June) has moved above $ 320 per ton in recent trading days.

Futures market
Overview of futures prices for: corn, wheat and soybean

This week the forecast is: The wheat price remains fairly stable.