Wheat futures on Euronext fell to the lowest level since August 2020

Market & Price Trends
Published Mar 5, 2024

Tridge summary

Euronext wheat futures have dropped to their lowest since August 2020 due to an increase in supply and a decrease in Russian wheat prices. The surplus of unsold wheat in Northern Europe and the Black Sea region is also pushing prices down. However, despite the low prices, farmers are hesitant to sell their wheat as the prices are often lower than the cost of production, leading to unstable supplies.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

On Friday, March wheat futures on Euronext fell by €6.25/t to the lowest level since August 2020 at €184.5/t, Agricensus reports. If at the beginning of the invasion of the Russian Federation in Ukraine, wheat prices, against the background of uncertainty with further supplies to the world market, reached 400 €/t, now they have decreased by more than 50%. Until August 2020, wheat futures did not exceed €200/t and usually traded in the range of €150-190/t. Traders believe that the increase in supply and the decrease in prices of Russian wheat will lower global quotations. Currently, Russian wheat with protein 11.5% and 12.5% on an FOB basis - Black Sea ports are offering $201/t and $206/t, respectively. Still unsold millions of tons of wheat in Northern Europe and the Black Sea region are also putting pressure on prices. In Romania and Bulgaria, stocks of wheat of the old harvest amount to almost 4 million tons, and traders have already started trading in the new harvest, which ...
Source: Graintrade
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