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Analysis Grains & Commodities

Wheat prices are riding on potential wave of buying

Wednesday 10:33 AM - John Ramaker

Wheat prices are now rising daily, supported by potential buying interest. Local markets are also thriving, benefiting from price increases on the global market.

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A rising market is boosting buyer interest, as they don't want to miss out. For example, a new tender is expected from Jordan for the purchase of milling wheat. There's also speculation about potential Chinese wheat purchases in the United States. In recent months, a falling market has been the reason these buyers have been hiding, partly out of fear of buying too much.

The potential purchases are further driving up wheat prices. On the Paris futures market, December wheat closed €1 higher on Tuesday at €194,75 per tonne. This means the market is now €8,50 higher than its low at the end of September. Trading in contracts for May delivery has risen to just above €200 per tonne in the improving market, and March contracts are close to this level.

We see a similar picture in price developments on the Chicago futures market. The December contract on this exchange has risen to just above $5,50 per bushel, or €176 per tonne. In mid-October, this price was still below $5 per bushel, or €160 per tonne.

Prices are currently supported by rising US wheat exports. This signal is based on export inspection reports, as official export figures are still unavailable due to the longest-ever US government shutdown.

Dutch prices
Wheat prices have also risen in the Netherlands. The Grain Exchange in Groningen is trading at €184 per tonne this week. This puts the price €6 higher than the low of €178 per tonne reached in late September and early October. A first step towards €180 was taken in the second half of October, and this increase has continued over the past two weeks.

Still, the stock market isn't exactly thrilled. The price changes aren't significant enough for that. More importantly, however, confidence is lacking. "Under the influence of international developments and large global grain stockpiles, the market remains uncertain," notes the listings committee in Groningen.

Corn and soy take a step back
Corn prices are rising in Paris, while prices in Chicago have fallen slightly. This is explained by a slight depreciation of the euro. Ukraine is also certainly exporting less corn than in previous years. This means the European Union has to purchase more corn elsewhere (Brazil and the US) to meet its needs. EU countries are primarily buying more corn in Brazil, and a slight increase in ethanol production there is immediately perceived as driving up prices.

Soybeans are also taking a step back after the rally of recent weeks. The most traded contract – January 2026 – fell by 12,75 US cents in Chicago to $11,21¼ per bushel. This is equivalent to €358 per ton. In mid-October, this contract was still trading at $10,24 per bushel. Early this week, the price rose to $11,34 per bushel, and after that strong rally, it lost some ground on Tuesday.

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