Wheat: France started the week with low prices
June 2, 2020 at 12:10 PM ,
Der AUDITOR
In Chicago, US wheat was trading at just under USD 5.16 per bushel in the morning, 0.6% lower than yesterday. In Paris, wheat fell by 0.9% to EUR 185.50 per metric tonne at the front and by 0.8% to EUR 203.00 per metric tonne at the Black Sea. In the USA, a lower dollar supported the price trend in Chicago. The US wheat harvest started at 3% and is causing pressure. Trade also registered the recent abundant rainfall in almost all areas of Russia, Kazakhstan and the Ukraine, while Western Europe still received too little rain. Although the climate for talks between the USA and China in the conflict over the Hong Kong Special Administrative Region has worsened, and Washington wants to restrict supply agreements with Beijing and introduce more customs controls, China bought 189,000 metric tonnes of US soft wheat last week. The export forecast by analyst SovEcon, which estimated Russian wheat exports at 36.8 million metric tonnes, was accepted, compared to 35.0 million metric tonnes for the USDA and 33.5 million metric tonnes last year. Wheat sowing in Argentina has picked up speed. The grain exchange in Buenos Aires reported progress of 13% on a total area under cultivation of 6.8 million ha. In Brussels, the EU Commission revised the forthcoming EU wheat crop (excluding durum) by 3.5% from 125.8 million metric tonnes in April to 121.5 million metric tonnes, compared with 130.8 million metric tonnes last year.
Wheat, daily price development
|
Milling wheat (12/220/76) |
||
|
Parity |
EUR/mt |
Diff. |
|
Rouen, FOB |
187.00 |
-2.00 |
|
Creil, FOB |
176.00 |
-1.00 |
|
Hamburg, DDP |
202.00 |
0.00 |
|
Westphalia, DDP |
199.00 |
0.00 |
|
Rhineland, DDP |
199.00 |
0.00 |
|
Upper Rhine Region, FOB |
191.00 |
0.00 |
|
Feed wheat (72/73) |
||
|
Parity |
EUR/mt |
Diff. |
|
Netherlands, CIF |
200.00 |
0.00 |
|
South Oldenburg, DDP |
202.00 |
0.00 |
|
Westphalia, DDP |
200.00 |
1.00 |
|
Upper Rhine Region, FOB |
190.00 |
0.00 |
|
Trade sources |
||
Bakeries are hoping for an early start to the holiday season
On the French spot market wheat fell slightly, although Egypt announced a wheat tender for delivery from 10 to 25 July. The export opportunities for EU wheat have deteriorated due to a rise in the euro exchange rate above 1.11 USD/EUR. According to forecasts by French weather services, the next two weeks will bring more rain, which would benefit the EU wheat crop. Mills, bakeries and the baking industry are counting on falling wheat prices, while the feed wheat market has provided a firmer impetus. Good prices for pigs and higher prices for beef speak for price stability, which again support higher livestock housing. For bakeries, a lot of business is lost to the food retail trade due to the requirements of the Corona crisis, because consumers concentrate their food purchases there, visit cafés and bistros less and the business generates much less turnover. Many bakeries are hoping for an upturn in sales with the start of the holiday season, if many Germans want to take a holiday in their own country this time.
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