India's export ban has caused wheat to climb to a new all-time high on Euronext in Paris. Contracts were traded at a peak yesterday up to a price of 443.25 euros/t. At the end of the trading day, the display board showed a plus of EUR 21.75 per ton. The contracts on the CBoT were similar, here the daily trading limits of 70 US cents/bu were torn. Today there is an extended trading limit of 105 US cents/bu. Only recently, India had issued an export target of around 10 million tons. However, the weather conditions are currently causing extreme damage to the crops and prompted the government to take this step. Concerns about global security of supply have thus been exacerbated once again. In France, the authorities continue to report an ongoing drought. In Germany, too, there are signs of a moderate drought, especially in northern and eastern Germany, but also in many parts of the Rheinladen. The extent to which the recent precipitation has improved cannot yet be conclusively answered. More precipitation is indicated for this week.
Source
VR AgrarBeratung AG
