Wheat prices are still showing upward trend

11-05-2022 | |
Photo: Canva
Photo: Canva

In the past week there have been some quiet moments but by the end the prices are again higher than the week before. And this week the prices will start a bit higher again.

Paris market

Old harvest recorded a plus of 1.4% to € 406.25 per tonne on the futures market in Paris over the past week. With new harvest not far off that with a plus of almost 5% for September delivery to 398.25 per tonne. At the beginning of this week, the €400 limit will be tested again.

Chicago market

Also in Chicago, wheat prices from the 2021 and 2022 harvest will start rising prices this week. That while in the past week a profit of more than 5% was realised. The July contract thus rose to a level of € 385 per tonne. For the 2023 harvest, the week will start with slightly lower prices. Delivery September 2023 dropped slightly on Monday 9 May to around € 358 per tonne. This means that the price there is higher than the € 340 that will be realised in Paris for this term.

US and EU exports calm

On the export front, things are still very quiet in the United States and the European Union. The US now has 91% of the expected exports for this season. This means that exports from the US are about 21% lower than a year ago. The EU is to export much more wheat this year, but nothing has come of it for the time being. In fact, the export of common wheat is more than 21 million tonnes behind a year ago.

Ukraine searches for new exit ports for grain

Ukraine saw its export opportunities go up in smoke, because Russia has blocked exports via the Black Sea. Ukraine is trying with all its might to create new ways to get the grain to a different destination. At the end of last week, for example, a train with 2,000 tonnes of Ukrainian maize was festively brought in in Austria.

Russians export more wheat than expected

The only country really benefiting from the current situation is Russia. The Russians are exporting more wheat than expected. And that despite export duties that are well above € 100 per tonne. For the coming week, the export indication prices from Russia are about € 9 lower than the € 353 in the past week. Grain corn is suddenly posting significantly higher prices there. The Russian export indicator price of corn increases by more than € 25 to almost € 280 per tonne. The export levy for this product therefore shoots up by about € 17.50 to € 73 per tonne.

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John Ramaker Commodities market editor, Boerderij