Following the Chicago stock exchange, the European grain markets are also responding with a plus. The Matif touched the top 171,50 euros per tonne for wheat on Tuesday.
The damage caused by the weather problems wheat crops emerged in the United States last weekend, the CBoT already rose on Monday. The Matif was closed for Labor Day, but the effect was immediately noticeable on Tuesday. Around 16.30:2017 p.m., the May 169,25 contract was quoted at 1 euros per tonne; that is 173,50 euro higher than Friday. At that moment, corn has a value of 1,25 euros per tonne. That's a plus of XNUMX euros.
Drought in France
Another factor is the drought in France. FranceAgrimer reports that the condition of French wheat deteriorated due to the moisture shortage in April. The rainfall of the past few days was not sufficient for the cultivation areas in the North and East of France.
Furthermore, insiders speculate about Russia's position as a top wheat exporter, which the country may lose due to the trade crisis with Turkey. Turkey is the second largest buyer of wheat. The Russians say they are not afraid of losing Turkey as a buyer, but they do fear the loss of time resulting from the search for new markets.