Wheat prices on Euronext fell for the second day in a row on Wednesday. Front-month September it fell to 0.25 EUR/kg. On the spot market, feed wheat prices fell sharply on Wednesday. Franko Südoldenburg, the price for August deliveries fell to EUR 0.24/kg. In Hamburg, bread wheat traded at EUR 0.27/kg.
Lack of demand and Russia’s offers below the world market
One reason for the softening wheat prices is the lack of demand on the world market. Countries in North Africa and West Asia are currently refraining from import tenders. The Russia-Africa summit begins today in St. Petersburg, where the future of grain supplies from the Black Sea will be a key topic. African countries are particularly suffering from rising food prices since Russia’s invasion of Ukraine and are pushing for an extension of the grain agreement. Russia, on the other hand, is trying to politically bind the countries by offering grain and fertilizer below the world market price and blaming the West for the failure of the grain corridor.
The second reason for the falling prices was the surprisingly good assessments of stocks on the first day of the North Dakota Spring Wheat Quality Tour. Yield estimates of 48.1 bu/ac were higher than expected and only slightly below last year’s result of 48.9 bu/ac. The tour continued Wednesday and final results are scheduled to be released Thursday.
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