Wheat Market News: Price Slide Amid Supply Concerns and Volatility

The wheat market recently saw a significant price drop, reaching a four-week low on both the Euronext exchange in Paris and the Chicago Board of Trade (CBOT). Key figures and forecasts paint a mixed picture for wheat prices amid ongoing market uncertainty.

Wheat Prices Fall to Four-Week Low on Euronext and CBOT

On Friday, wheat prices on Euronext dropped to 243.75 EUR/t for the September contract, down by 7.50 EUR, resulting in a weekly loss of 15.50 EUR (6%). CBOT’s July wheat contract fell 12 cents to 5.37 USD/bu (213 EUR/t), its lowest level since early May.

Weak Prices Persist Despite Production Concerns

Despite Europe’s wheat harvest being at its lowest in 12 years, prices remain subdued. The International Grains Council (IGC) recently cut its EU soft wheat production forecast by 2 million tons, down to 112.6 million tons for 2024. However, this lower output has not yet impacted prices significantly, likely due to a range of external economic and market factors.

Ten-Month High Reached Prior to Current Drop

Prior to the recent dip, wheat prices had reached a ten-month high. The September contract on Euronext rose to 261.25 EUR/t, driven by drought in Russia and deteriorating crop conditions in France, highlighting concerns over supply.

Current Wheat Market Price Levels

As of the latest update from finanzen.net, wheat prices are around 219.25 EUR/t, fluctuating daily in response to global conditions, weather events, and geopolitical developments.

Market Outlook

The wheat market remains volatile, driven by fluctuating production forecasts, challenging weather conditions, and complex international trade dynamics. Monitoring these factors closely will be essential for stakeholders navigating the current wheat market landscape.





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