Wheat trade in Paris temporarily hits €300

Demand from importing countries for wheat continues. And that ensures a solid base in the market. In addition, last week there was also the Wasde report from the US Department of Agriculture, which supported current developments in the market. The forecast for global wheat production has been lowered, while wheat consumption is estimated to be slightly higher. This results in lower closing stocks, which is fodder for further price increases.

Russia increases wheat export duties

In addition, there were also reports from Russia fuelling speculation in the wheat market. Russia has further increased export duties. More importantly, the country expects further restrictions next year. For example, it is said that there will be a possible adjustment of the formula used to calculate export tax.

Less wheat available on the world market

Russia alludes to a possible export quota to curb exports in the second half of the marketing season. The latter would be necessary to further curb inflation at home. The direct consequence of this is that less wheat becomes available on the world market as Russia remains the largest player in wheat exports.

Strong Chicago wheat price

In Chicago, the wheat price made a very strong jump last week when the December contract was up 6.6% and rose to US$8.17 per bushel. Converted, this means a price of €262 per tonne. The fact that the dollar is currently strengthening against the euro reinforces the price increase when converted into euros. Delivery in March or May is also a bit higher at around €266-267 per tonne.

European wheat market

In Europe, prices are slightly higher in the short term than later in the season. The quote for December delivery in Paris fluctuated around €294 per tonne at the beginning of this week. This means that the price is slightly lower than the high at the end of last week. Delivery in May is just below €290 per tonne at the beginning of this week.