EU wheat loses strength due to stronger euro

A weaker dollar keeps wheat in Paris in place Drought, exchange rates and oil prices are shaping the picture on the wheat futures markets at the start of this week. In Chicago, wheat prices rose slightly again on Tuesday as a result of growing concerns about yield losses due to drought in the US Plains. Wheat prices in Paris remained stable despite this because of a weaker dollar. The May contract on the futures market in Paris stabilized on Tuesday at €195.75 per ton. That puts the price about €8 below the average over the past month. Developments in the conflict between the United States and Iran have the main share in this. Still, the dollar exchange rate is also an important factor. At the beginning of this month, the value of the euro was just under $1.15. By now, it has risen to almost $1.18. That has direct consequences for the competitiveness of EU wheat on the world market. A weaker dollar makes EU wheat more expensive relative to the competition. Prices for the later contracts are also clearly lower than in recent weeks. New crop for September 2026 is still barely €206 per ton. That puts the price €10 lower than at the end of last month. The September quotation for the 2027 crop fell at the end of last week to €217.25, but recovered slightly this week to €221.50 on Tuesday. In Chicago, drought problems pushed the closing price of the May contract up by almost 10 cents on Tuesday to $5.92 per bushel. The July contract rose just above the $6 per bushel mark because of the increase. Due to the weaker dollar, the increase in value in euros remains limited. The May contract has a converted value of €184 per ton, the price for July is €3 above that.