Grain yields are disappointing worldwide, resulting in the continuous increase in prices.
A strong demand from China is also supporting the upward price trend. Starting this week, demand in Germany from the compound feed industry seems to be slowing down due to African Swine Fever. Despite the increased wheat prices, Russian wheat is in high demand. Egypt bought wheat of Russian origin again at the beginning of this week: 405,000 tons. Prices for this tender are $ 9 higher than the previous tender.
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Sales of Russian wheat is currently high on the world market. The Australian harvest is expected in December, which seems to be good so far. Nevertheless, with 4.1 million tons of wheat, European wheat exports are more than 38% behind last year (1 July to 20 September). For the same period, EU maize sales are more than 75% behind last year at almost 88,500 tons.
The wheat meal quotation on the futures market in Paris was € 194.75 per tonne on Tuesday 22 September for the first-term contract (December). This is the same price level that was recorded at the end of April. Another reason for the high prices for cargoes delivered is the low water levels in European rivers. As a result, there are about 40% to 50% low water costs on the cargoes. That drives the price of wheat even further up.
The corn price has also risen considerably in recent weeks. Partly because the French maize harvest seems to be disappointing. Summer crops in Southern Europe have been hit hard by the drought. Persistent drought also has a negative effect on crops in Ukraine.
Overview of futures prices for: corn, wheat and soybean
This weeks forecast is: Stable to higher wheat price.
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