December wheat contract trading came close to the €250 per tonne mark on the Paris futures market in the 2nd half of last week.
There were daily pluses, except Friday. A small minus followed on the last day of the week: -€ 1 to € 247.75 per tonne. All in all, there was a significant increase in price. Compared to the week before, wheat trade in Paris finally closed 4.2% higher on Friday. This put an end to the downward trend of recent weeks. The question is whether the upward trend will continue. The new week started Monday morning with somewhat lower quotations.
Russia announced on Friday that export duties will be slightly lower for the week of September 22-28. This puts an end to the ever-rising export duties since mid-August. In mid-August, the wheat duty was just above $30 per tonne. Last week the peak was reached at $ 52.5 per ton for the time being. For the coming week, tariffs are $1.60 lower. So a limited decrease, which is not expected to have much effect on exports for the time being. With the export tax on grain, Russia wants to curb inflation in its own country.
In Chicago the picture was the same as in Paris. Rising prices, with slight fall on Friday. The latter is mainly attributed to profit taking after an attractive price increase in the past week. In the end, a price increase of about 3% remained compared to the previous week.
All in all, it was a good week for wheat sellers. The 2022 harvest also benefited. Because the prices in quotations for next year’s grain harvest also went up a bit.
In corn, futures quotes for the next month of delivery rose 2% in Chicago and 3% in Paris. Soybean prices stabilised in November. The corn and soybean harvest in the United States is progressing steadily, and that seems to put some pressure on price formation. Moreover, it remains to be seen to what extent there will be demand from China.