Wheat prices are still rising despite a very large harvest
Wheat
World
Published Sep 5, 2020
Tridge summary
European wheat prices rose to € 190 on Tuesday. These are the highest prices since April - that is for 6 months. This happens right after the harvest - when grain prices usually drop to their seasonal low. But this year everything is different. Despite the very large world harvest, prices are rising and rising. The surcharge is currently EUR 14 per ton from the beginning of August. Wheat prices are also rising in Russia's Black Sea ports, where the harvest is very high - but export demand is even greater.
Original content
This very strong demand from export markets is also driving up prices in Russia. The Russians also benefit from the fact that the ruble is very weak against the euro and the dollar, which makes their grain even cheaper. The exact opposite can be seen in Europe: here the very small harvest of wheat - especially in France - ensures a relatively small supply. At the same time, the euro becomes more and more expensive, exports more expensive and actually puts pressure on wheat prices in the domestic market. However, after a very poor start to the new export season, demand for European grain is now clearly growing markedly - despite high prices. On the one hand, there is China, which buys a lot of wheat and barley in France. At the same time, the British have a very poor wheat harvest and therefore have to buy high-quality wheat in Germany - and possibly Canada as well. Read also: Cereal prices in Europe are getting higher, but China is okay. In the European futures market, wheat ...
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