The wheat quotation on the Matif in Paris has touched €190 per tonne for the first time in a long time. This is partly due to the ongoing protests in France against the pension reforms.
The French strikes, which have been going on for more than a month, are causing persistent logistical problems in France. And while export demand is favorable, including from China. French exports of soft wheat outside the EU reached 1 million tons last November. Experts estimate that this would have risen to 1,2 million tonnes by December.
Tensions in the Middle East
The tensions in the Middle East also have an impact on the global wheat market. The Middle East is an important market for grains. The liquidation of an Iranian general by America last week and Iran's subsequent retaliation have created a conflict situation between the two countries.
After the relatively mild response from US President Trump, confidence in the wheat trade increased slightly again. The closing price on the French Matif therefore reached €8 on Wednesday, January 10, for the first time in 190 months. The wheat price also rose at the CBoT in Chicago.
In the meantime, eyes are on next Friday, when the new WASDE report will be released. Experts expect significantly smaller winter wheat acreage in the United States. It is also shrinking in Europe area winter wheat, estimated at 200.000 hectares.