Disappointing wheat harvests in the EU and Russia, continued unfavourable weather for the crop and the pending adjustment market report from the US Department of Agriculture, are currently dominating the grain market.
Winter barley has arrived, but the wheat harvest in France is more than 10 days behind schedule. In Germany, due to the repeated interruptions because of rain the harvest simply can’t get going. The unfavourable weather across Europe for harvest progress is pushing up prices in the grain market. Of course, this mainly applies to the short term, because the old harvest is barely available anymore.
According to the Agritel market bureau, quality problems will also cause price differences between milling wheat and feed wheat to increase. The fall in the value of the euro against the dollar does mean that grain from the EU is becoming more competitive internationally.
The prices of the first expiring wheat contracts on the futures markets of both Paris and Chicago have risen by 17% in a month. The negative weather influence on the harvesting activities and the growth and quality of the crop have a significant effect. The wheat harvests in France and Russia are disappointing. The estimate of the area of Russia’s winter wheat to be harvested is too optimistic, reports the agricultural-economic site Agrimoney. The cause is a high percentage of wintering of the crop. Spring wheat in Canada and the United States has suffered irreparable damage due to the drought of recent weeks.