Wheat prices are under pressure. The stock exchange quotes are giving a blow, especially due to the weather reports in the US. But the good harvest expectations in Europe and the Black Sea region also do not help the price.
The European Matif quotation fell yesterday (Tuesday, July 7) with a closing price of €198,25 per tonne for the first time since October below the €200 mark. On April 30, the price peaked at €257,75 per tonne. the price has now fallen 23% in more than 2 months. The US CBoT also closed lower at $227,81 per tonne.
Barely a week ago, the market received another boost after the USDA news about limited area growth and tight supplies. These reports have now been processed and people are once again looking at the good harvest (forecasts) and weather reports. This applies not only to wheat but also to corn and soy, the prices of which are falling.
Rain gives peace
Spring wheat is in poor condition in the US. 16% of the area is qualified as good or excellent, the USDA announced yesterday. Last season that was still 70%. Rain is forecast for parts of the US, including the states of North and South Dakota, so that spring wheat can still recover. This temporarily alleviates the concerns on the market. 47% of winter wheat in the US is rated good or excellent. The winter wheat harvest is lagging behind the 5-year average. 45% has been threshed compared to 53% on the same date in the long-term average.
Wheat is doing well in Europe. The JRC institute announces in the MARS bulletin of June 21 that the wheat yield is 5,8% above the 5-year average. The first winter barley has been threshed in France, but little progress is being made due to the showery weather.