Prices for European wheat rose against the background of plans to limit supplies from the Russian Federation

Prices for European wheat on the stock exchange in Paris last week rose by 6.3% on forecasts of a reduction in the harvest in the EU in 2024 and against the background of the European Commission's proposal to introduce a duty of €95/t on grain imports from the Russian Federation.

On Friday, May wheat futures on Euronext rose 3.8% to €207.25/t or $224/t (+6.3% for the week, +8.4% for March), while September new crop wheat futures - up 3.3% to €218.28/t or $236/t (+6.3% for the week, +9% for March).

According to FranceAgriMer monitoring data, 66% of soft wheat crops are in good or excellent condition in France (94% last year), which is the worst indicator for this period since 2020. 93% of the planned areas were sown with spring durum wheat (100% last year). and 72% of crops are in good or excellent condition (92% last year).

According to the Russian Grain Union, in the first decade of March, the Russian Federation exported 1.27 million tons of grain, and in the second - 2.88 million tons, in particular wheat - 1.07 and 2.39 million tons, respectively. In total, 4.143 million tons of major grain crops were exported in March (corresponding to last year's indicator), of which 3.454 million tons of wheat were exported, which is 1.7% higher than the corresponding indicator of March 2023.

Prices for Russian wheat in March fell by 6% to $210/t FOB Novorossiysk. At the same time, the Russian Federation continues to actively supply grain to the world market, hoping that the wheat harvest will increase compared to last year from 92 to 94 million tons.