Wheat on the Paris futures market is recovering somewhat

On Wednesday morning, February 11, the wheat futures market in Paris climbed back above €190 per tonne. This marked a recovery in pricing after a weaker start to the week. The worst of the cold snap in Europe and the US had subsided, shifting the focus back to the intense competition in export markets at the start of the week. The exchange rate also played a role on the European continent.

In Chicago
In Chicago, the market had already moderated somewhat on Friday after a decent rebound last Thursday. Trading there remained relatively unchanged at the start of the week. The publication of the Wasde report also brought little change. The report also showed little change compared to last month. Moreover, the total remained close to zero. It yielded virtually no change in production, consumption, or inventory figures.  

Compared to a week ago, prices in Chicago on Tuesday evening were flat. The March contract was trading slightly lower at $5,28¼, while the May contract closed slightly higher at €5,38 per bushel.

Currency influences
In the intervening period, the euro has strengthened somewhat. This means that prices are somewhat lower in euro terms. March fell by €2 to €163 per tonne, while the decline in May was limited to a €1 decrease to €166 per tonne.

In that respect, Paris has taken a more significant step downward in the past week. Last week, trading prices were still €193,25 per tonne based on March and €191,50 for May. With closing prices of €198,50 and €189, respectively, these prices were somewhat lower on Tuesday. As mentioned, this was somewhat corrected the following Wednesday morning.

local market
Meanwhile, local prices in the Netherlands are holding steady. The Zuid exchange (Goes) is trading at €175 to €180 per tonne, slightly higher than last week, but the Groningen grain exchange is trading unchanged at €191 per tonne for wheat and barley. It is noted that there is little interest in selling the grain.