Wheat

Wheat prices in the EU continue to fall


Source: Ukragroconsult (Ukraine)

Wheat prices on Euronext fell for the second day in a row on Tuesday, according to traders.

Wheat futures for December delivery on Euronext Paris fell 0.6% to 219.25 euros per tonne, down further from Friday’s one-month high of 228.00 euros.

Chicago wheat was also down in US trading after falling almost 3% on Monday, while the contract retreated from Friday’s three-month high.

Wheat markets rallied last week amid rising international tensions and unfavorable weather conditions that heightened supply concerns in the key Black Sea export zone.

However, the lack of further escalation and new signs that Russian wheat remains competitive for export cooled the price rise.

Analysts estimate that export prices for Russian wheat were little changed last week, with prices for the 12.5% protein crop mostly offered below $220 per tonne ex-board. Meanwhile, Russian export volumes are expected to remain strong in September, albeit below August’s record high.

“Russian wheat has not moved from its position during the rise in futures,” said a French trader. “Without the Russian market, prices cannot continue to rise.”

Ample global stocks have diverted attention from rain-induced crop failures in Western Europe, including the lowest harvest in France since the 1980s.

The French Agriculture Ministry on Tuesday lowered its estimate for the country’s main wheat crop to a 38-year low of 25.78 million tons, roughly in line with estimates from other markets.

Common wheat exports from the European Union since the start of the 2024/25 season in July totaled 5.39 million tons through Sept. 15, down 23% from a year earlier, although data for France and Bulgaria were incomplete, data released by the European Commission showed.

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