European wheat prices rose amid intentions to limit supplies from Russia

the price of European wheat on the stock exchange in Paris last week rose by 6.3% on the forecasts of reduction of the harvest in the EU in 2024 and on the background of the proposal of the European Commission to impose a duty of 95 €/t on grain imports from Russia.

on Friday, the may wheat futures on Euronext rose by 3.8% to 207,25 €/t or 224 $/t (+6.3% for the week, +8.4% for March), and September futures for wheat of the new harvest – by 3.3% to 218,28 €/t or 236 $/t (+6.3% for the week, +9% for March).

According to FranceAgriMer monitoring, 66% of soft wheat crops in France are in good or excellent condition (94% last year), which is the worst indicator for this period since 2020. 93% of the planned areas were sown with spring durum wheat (100% last year), and 72% of crops are in good or excellent condition (92% last year).

According to the Russian Grain Union, Russia exported 1.27 million tons of grain in the first ten days of March and 2.88 million tons in the second, including 1.07 million and 2.39 million tons of wheat, respectively. In total, in March, the country exported 4.143 mln tonnes of major grains (the same as last year), including 3.454 mln tonnes of wheat, which is 1.7% higher than in March 2023.

Prices for Russian wheat in March fell by 6% to 210 $/t FOB Novorossiysk. At the same time, Russia continues to actively supply grain to the world market, hoping that the wheat harvest will increase from 92 to 94 mln tonnes compared to last year.

Tags: prices, wheat, Russia, EU