Turmoil in the grain market whips up the wheat price in Paris again to above € 350 per tonne. Meaning that the price drops of the past 2 weeks have suddenly been brushed away.
Russia threw the cat among the pigeons, when they pulled out of the UN grain deal for grain exports from Ukraine. This action is causing the current turmoil in the grain market. This is again fodder for speculators who like to take their share when large price fluctuations occur in an uncertain market.
The futures market in Paris opened on Monday morning, October 31, at a price level of €351.75 per tonne. That’s almost $15 higher than last week’s close. Grain corn also started the week with prices above € 350 per tonne for the November contract. After that, the price on the futures market in Paris fell again slightly. Most trading is done in March contracts, which started at €343 lower than the November trade.
In Chicago, wheat fell in price for four weeks in a row
On the world market, American wheat became somewhat more competitive against wheat from the Black Sea region. In Chicago, wheat fell in price for 4 weeks in a row, reaching around €306 per ton at the end of last week.
That did help to stimulate exports in the second half of October. After a slow start to the season in October, Russia also saw its exports increase sharply to more than 4.1 million tons after price cuts. In the past 2 weeks, the Russian wheat price climbed slightly again to a level of around € 310 per tonne.