Wheat prices have made another big step on the futures market in Chicago.
In the past week, prices increased by 4.5%. Prices also rose on the futures market in Paris, but the plus lagged somewhat behind at 1 to 1.5%.
Due to the relatively strong price increase in Chicago, the price difference between Paris and Chicago has almost disappeared. On Friday, Paris recorded around € 269 per tonne for the next 2 delivery months. Chicago notes a bushel for soft wheat at around $ 8 per. Converted, the price is approaching a level of around €260 per tonne. This makes the price difference very small.
Perhaps even more striking are the prices of the new crop. The prices for the delivery of the 2022 harvest are no longer inferior to those of the wheat from the old harvest. The quote for delivery in March 2023 at 804.25 dollar cents per bushel is even slightly higher than the price for March 2022 (797.75 dollar cents per bushel). And the prices of the 2023 harvest are also creeping closer to the current relatively high prices. Delivery in March 2024 also peaked on February 9 at about 770 cents per bushel.
In Paris, the new crop is also moving towards the levels we see for the next few terms. May 2022 quoted €258 per tonne on Friday 11 February. The gap with May 2022 has thus narrowed to € 11 per tonne. For harvest 2023, business will be done at € 236.50 per tonne, delivered in December 2023. There are quotes for periods even further in the future, but hardly any business has been done yet. September 2024 quoted almost €230 per tonne on Friday 11 February.
Last week’s price hike is largely attributed to the threat of war between Russia and Ukraine. Earlier in the week, the US Department of Agriculture slightly lowered expectations for closing stocks of wheat this year. This also resulted in slightly higher prices.