Wheat on futures market in Paris bounces back

The price formation of wheat on the futures market in Paris is bouncing back somewhat after a tougher start this week. Prices in Chicago remained relatively stable. On Wednesday morning, February 11, the futures market for wheat in Paris climbs back above €190 per ton. This marks a recovery from a poor start earlier this week. The worst cold in Europe and the US has passed, shifting the focus back to the intense competition in export markets. The exchange rate also played a role in this situation in continental Europe. In Chicago In Chicago, the market was already tempered on Friday after a decent recovery the previous Thursday. At the beginning of this week, trading there did not change much. The publication of the Wasde report also brought little change. The report showed not many changes compared to last month. Moreover, the net sum of these changes remained close to zero. It resulted in almost no change in production, consumption, or inventory figures. Compared to a week ago, prices in Chicago on Tuesday evening were at the same level. The March contract quoted at $5.28¼ was a fraction lower, while the May contract ended slightly higher at €5.38 per bushel. Currency influences In the meantime, the euro has strengthened somewhat. This means that when converted to euros, prices are somewhat lower. March drops by €2 to €163 per ton, while the decline for May was limited to a decrease of €1 to €166 per ton. In that respect, Paris has taken a clearer step downward over the past week. Last week, trading generated prices of €193.25 per ton based on March and €191.50 for May. With closing quotes of €198.50 and €189 respectively, these prices were indeed somewhat lower on Tuesday. As mentioned, this was somewhat corrected on Wednesday morning. Local market Local prices in the Netherlands remain steady. Beurs Zuid (Goes) is priced at €175 to €180 per ton, a fraction higher than last week, but the Groninger grain exchange quotes for wheat and barley unchanged at €191 per ton. It is noted that there is little interest in selling the grain.