Wheat prices in Paris were weaker last week. The closing price on Thursday was EUR 221.50 per tonne for the December date, around EUR 9 below the previous week's price of EUR 230.25 per tonne on Thursday last week. One reason for the decline is the continuing price pressure on the export markets, particularly from Russia. Large quantities are exported here. There is speculation as to how long Russia will be able to maintain this high export rate. The improved sowing conditions in Western Europe also had a price-suppressing effect. In France in particular, winter cereal sowing is making good progress again.
On the US markets, export figures continue to determine the price direction. Exports of both wheat and maize are currently exceeding analysts' and traders' expectations. The fact that prices remained unchanged over the course of the week was due to the improved weather outlook in major growing regions. Sowing conditions for wheat have improved in the USA and Russia, and continuous rainfall is also expected from Argentina for the sown maize.
Political developments remain uncertain. The summit of the BRICS countries has fueled speculation about the creation of a separate grain exchange, but traders do not expect this to be implemented realistically in the short term.
ZMP Live Expert Opinion
The latent pressure on prices is likely to continue as long as supply and prices remain at the current level at Black Sea ports. In the USA, demand for the record maize harvest is currently high, but significant price markdowns are not to be expected. Overall, the market remains balanced under the current circumstances.
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