Inside: Grains & Raw Material
Frost does not allow wheat price to rise
This month's cold weather has had little impact on winter wheat in Europe. The crops are doing well. What effects will this have on European wheat markets?
Would you like to continue reading this article?
Become a subscriber and get instant access
Choose the subscription that suits youIn Western European countries, winter wheat is in good condition and has caused little damage during the recent frost period. Damage has been caused by the cold in Russia and Ukraine. This is because there is too little snow cover.
(Text continues below the tweet)
The reports stating that wheat is in good condition resulted in a decline on the Matif in Paris. While the quotation on Thursday, March 1 was still €167 per tonne, it is now €158 per tonne.
Offer of Russian wheat
The supply of cheap Russian wheat also has a downward effect on prices. Exports from Russia are supported by the fact that the import ban from China has been lifted. In the current season (until February) Russia exported 27 million tons of wheat, compared to 19 million tons a year earlier.
Exports from the European Union (EU) lag far behind this (almost 14 million tons up to and including February). This means that European exports are also far behind last year, when 17 million tons were already exported in the same period.
Finally, the price is also depressed by the strong euro, which is detrimental to the export of European wheat.
After an upward trend for a long time, a decline has now started.