We see stable to slightly higher wheat prices on the futures markets at the beginning of this week. This continues last week’s upward trend.
In Paris, wheat prices rose by 3% last week to well above € 350 per tonne. Chicago even showed a plus of more than 4% and increased to about € 340 per ton.
On the futures markets, wheat has already seen 2 weeks of rising prices. The latest price increases are attributable to somewhat smaller wheat yields in the United States. At least smaller than predicted. It seems that the trade is realising that the harvest in the US will actually turn out to be a major setback than was previously announced by growers.
With a smaller wheat crop in the US, concerns about the global grain supply are fuelled again. The annexation of occupied territories by Russia also reinforces that idea. Because with that annexation, the fear of an escalation of the war in Ukraine grows. This in turn means that the export of grain from the Black Sea region is again at stake. In short, there are plenty of concerns about whether sufficient grain will be available this season. And that in turn leads to rising prices.