Heat wave in Europe heats up wheat prices

heat waves in Western Europe, which will last another 2 weeks, led to higher prices for French wheat by 2%. Some experts predicts significant yield decreases due to the heat. Others believe that can only be affected crops in the North of France that are in a risky stage of development. However, the potential losses will be offset by the harvest in southern regions, where grain filling is completed.

• September futures for milling wheat on MATIF rose by 3 €/t to 183,75 €/t or 209,54 $/t

With the start of the season, the EU countries exported 20,037 million tonnes of soft wheat that is inferior to the corresponding indicator of the season 2017/18 4% (last week was 3%). Import soft wheat amounted to 4,034 million tonnes, which exceeds the same indicator 2017/18 MG 3% as the previous week.

July futures on soft wheat in Chicago yesterday rose 2% on news of strong heat in the EU and rainfall in the wheat belt of the United States, which hold the collection. Today, the market will react to data report on crops and the rate of harvest, which was released after the auction.

According to the USDA NASS report, as of June 24, winter wheat in the U.S. collected 15% of areas compared with 34% on average for 5 years. The number of crops of winter wheat in good or excellent condition for the week decreased from 64% to 61%, spring wheat – from 77% to 75%.

the July wheat futures in the U.S.:

to 4.78 $/t to 171,04 $/t for solid winter HRW wheat in Kansas city

by 2.76 $/t to 199,70 $/t on a firm spring HRS wheat in Minneapolis.

• by 4.41 $/t to 197,68 $/t for SRW soft winter-wheat in Chicago