Wheat futures on Euronext fell to the lowest level since August 2020

On Friday, March wheat futures on Euronext fell by €6.25/t to the lowest level since August 2020 at €184.5/t, Agricensus reports.

If at the beginning of the invasion of the Russian Federation in Ukraine, wheat prices, against the background of uncertainty with further supplies to the world market, reached 400 €/t, now they have decreased by more than 50%. Until August 2020, wheat futures did not exceed €200/t and usually traded in the range of €150-190/t.

Traders believe that the increase in supply and the decrease in prices of Russian wheat will lower global quotations.

Currently, Russian wheat with protein 11.5% and 12.5% on an FOB basis - Black Sea ports are offering $201/t and $206/t, respectively.

Still unsold millions of tons of wheat in Northern Europe and the Black Sea region are also putting pressure on prices. In Romania and Bulgaria, stocks of wheat of the old harvest amount to almost 4 million tons, and traders have already started trading in the new harvest, which will enter the market in July.

If Poland exports the projected 5.5 million tons of wheat in 2023/24, its reserves will amount to 2.5-2.8 million tons.

In the European ports of the Black Sea, as well as in Northern Europe, the demand for food wheat is almost zero.

Farmers do not want to sell wheat at low prices, which are sometimes lower than the cost of production, so they cannot ensure stable supplies.