Rising corn prices in Paris give wheat support

The rising prices of corn on the futures market in Paris are pulling wheat upward as well. Wheat is trading around midday at €0.75 per tonne higher, after grain corn prices rose by €3 to €4. The acreage of grain corn in France is turning out to be considerably smaller than expected. Higher prices for diesel and especially fertiliser are given as the reason. Growers have apparently chosen crops that require less fertiliser. In addition, very high temperatures are forecast in large parts of France. The August contract for grain corn rose this morning on the Matif in Paris by €4.25 to €214 per tonne. November rose by €3.25 and stood around midday at €210.50 per tonne. In Chicago there was a mixed picture yesterday: the nearest expiring contracts were slightly lower, while later contracts rose slightly. In the US, the crop condition is assessed as good and a plentiful supply is expected. Price increase remains limited Wheat is benefiting in Europe from higher corn prices. There was also some support from an Algerian tender for delivery in August. However, the increase remains limited. The harvest outlook in the northern hemisphere is reasonably good and limits room for further price increases. The US winter wheat harvest is progressing faster than expected, but quality remains weak: only 27% is rated good to excellent. Ukraine expects a slightly larger harvest of 23.5 to 24 million tonnes, which could add extra supply pressure. July wheat rose on Tuesday on the CBoT by 6¼ cents to $5.96 per bushel. Later contracts also moved slightly higher. September rose by 3¾ cents to $6.04¼ per bushel, which amounts to around €191 per tonne. On the Matif futures market in Paris, prices have moved slightly further away from the €200 per tonne level. September was quoted on Wednesday morning at around €203 per tonne, while December is €7 above that.