News Grains
Wheat price 2021 harvest pops to 200 euros
On Wednesday morning, January 13, the September contract on the Matif in Paris reached the level of €200 per tonne. This offers good opportunities for arable farmers to cover themselves. The current (March) contract is also doing good business. It reached its highest price level ever.
The contract for March delivery on the Matif closed Monday, January 11 at €218 per tonne. On Tuesday morning, the commodities exchange opened strongly and closed at €224,50 per tonne. When the influential Wasde report was published (6 o'clock our time), the stock market was already closed. Its effect will therefore only be noticeable on Wednesday morning.
The last time the wheat price rose above its current level was in 2013.
psychological boundary
The contract for the delivery of the 2021 harvest (September) also shows green figures. It just missed the €200,00 per tonne mark on Tuesday and closed at €199,50. On Wednesday morning, the Matif opened at €200,75. This is an important (psychological) level for arable farmers to start with price hedging.
Besides trading on the Matif, growers can also sell in advance through grain traders. However, the physical market does not charge the same price as the commodity exchange, due to additional costs and the fact that traders also have to think again. Inquiries with the trade show that selling wheat crops for 2021 now yields prices that are around €15 per tonne lower. This means an effective price level of €185 for delivery 'to the put'.
Technical analysis on green
The trend remains positive for milling wheat, as the technical analysis for March '21. The technical profile of the price increases remains strong and therefore positive. The stochastic is currently at 90 points. This means that the upward force is much stronger than a downward price reaction. Since December 17, the technical analysis has already given a positive advice, indicating a rising wheat price.
foundation
Is it justified to think that prices can rise (much) further? Many stock analysts think of † Looking at the worldwide grain stocks, the current crop levels and the export policy of Russia in particular, shortages are expected in a demanding market. The influential WASDE report was also released today, which provides more clarity about acreage and stocks. A price level of €222 on the current contract and €200 for the new crop may be a foundation for further gains.
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Niels van der Boom
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