The wheat price showed some signs of recovery on Tuesday 28 August after a sharp decline. The reason for this was, among other things, a reduction in the expected Russian wheat harvest. Is this the start of a further recovery in wheat prices?
The wheat price on the CBoT in Chicago fell slightly on Tuesday, August 28, but this can mainly be seen as a stabilizing movement. This after the price lowest point achieved in 1 month. At the Matif in Paris, the wheat price rose by €0,50 to €197,50 per tonne, which also opened on Wednesday, August 29.
The revival can partly be explained by the fact that Egypt has purchased 360.000 tons of wheat from Russia and Ukraine. With this tender, the importers appear to be back on the market. This is because the wheat price has fallen again to an acceptable level for them.
Reduction of the Russian wheat harvest
There was also another 'positive' message from Russia. The analyst firm Ikar lowered the estimate for the Russian wheat harvest to 69,6 million tons, from 70,8 million tons previously.
The soybean price (CBoT) continues to decline and recorded the lowest price in 28 month on August 1 ($301,50 per tonne). This is mainly because the soybean harvest in the United States is likely to be record high. And the trade war with China must also be taken into account. The harvest is also over corn in the United States enormously, which causes the price to drop considerably.