European grain markets: Little wheat, low prices
Dutch farmers are harvesting even less wheat than expected. Agrifirm and CZAV reported yields of 7.5 to 8 tons per hectare on July 31. However, quotations on stock exchanges and futures markets did not increase. And prices remain low.
On July 22, yields were reported of 7 to 9 tons of wheat per hectare following the first harvest results in the Netherlands. CZAV assumed an average of 8 tons, 1.5 tons less than last year. On July 31, more than a week later, it reported that a quarter of the Dutch wheat acreage was harvested. The average yields are provisionally estimated by the parties mentioned at 7.5 to 8 tons per hectare. This is therefore lower than the expected yield reported 9 days ago.
France struggles with historically low harvest
There’s a lot going on. The season was characterized by few hours of sunshine, a lot of wetness and high disease pressure. Other countries in Western Europe are also suffering from this. France is even struggling with a historically low harvest. The yields per hectare there are up to 30% lower than last season, it was reported earlier this week.
No price increases
This has not led to wheat price increases on stock exchanges and futures markets. Harvests and stocks in other countries and parts of the world, such as in Russia, are so large that buyers do not yet feel compelled to dig into their pockets.
