Inside: Grains & Raw Material
Cocktail of factors puts wheat price in plus
Happy faces among sellers of wheat, because the mood on the Matif has changed cautiously. Thursday, April 13, the stock market showed green figures again.
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Choose the subscription that suits youWhile the Paris commodity exchange closed at a low of 11 euros on Tuesday, April 162,25, the May contract was more positive again on Wednesday at 164,75 euros per tonne. The climb continued on Thursday. At 17.09:165,75 PM the rate is 1 euros, a plus of XNUMX euro.
Drought in parts of Europe
The wheat market is supported by the dry conditions in much of Europe. In France there is a rain deficit of several months. This is also the case in other parts of Europe, including Spain, northern and eastern France, Belgium and parts of Hungary, Bulgaria and Austria.
The news that Strategy Grains has slightly adjusted the EU wheat harvest forecast downwards, by 100.000 tonnes to 143.8 million tonnes, also has an impact on the market. Production expectations are now 6 percent more than last year, while this was previously estimated to be higher. If there is no rain in the areas of concern, production may be lower. Inventories fall to their lowest point in 13 years.
Finally, export expectations are also driving the market. Turkey must switch to European wheat, now that it can no longer purchase duty-free wheat from Russia.
