Wheat trading on the futures market in Paris rocketed to €307 and just above on Monday, November 22. This clearly marked a step above the limit of €300 per tonne.
The International Grains Council IGC lowered its forecast figures for wheat production and stocks last week. This once again confirmed the fear of limited availability of this cereal. In addition, heavy rainfall could be a major setback for Australia’s record crop of wheat to come from the country.
In short, the signals for the wheat market are green again at the beginning of this week to push prices further. Last week, the threshold of €300 per tonne was also briefly mentioned, but trade ended the week at a price level that was just below this limit.
There are speculations that China wants to buy more fodder wheat in France. Several other countries are also entering the world market in search of fodder wheat. This has also given the US wheat market an extra boost.
At the beginning of last week, the price in Chicago rose to the highest level since December 2012. Finally, wheat was slightly higher at the end of the week than the week before. That in itself is encouraging for sellers, because in that week there was a plus of no less than 6.6%. The March contract rose 0.7% in Chicago last week to the equivalent of € 272 per tonne.
Maize continues to rise in price in Europe, but in America this product lost a bit after the significant price increase in the previous week. The January contract in Paris increased by 2.1% to € 248.75 per tonne. In Chicago, the March contract dropped 1.4%. Due to the stronger dollar, however, the converted price remained just above € 200 per tonne.
IGC increased global corn production. This effect is compensated by the demand for cheaper alternatives than feed wheat. As a result, corn prices in Chicago also remain fairly stable.