European wheat market: Dry and hot weather in France continues to boost wheat prices

 

On Thursday (May 19), the delivery price of first-class French wheat at the French port of Rouen was $458/ton, $28 higher than a week earli.
The price range over the past 52 weeks is $240 to $472 a ton.

 

On Thursday, the price of second-class wheat in Shanghe, Argentina was 481 yuan/ton, up 21 dollars from a week ago; the price of .
2 hard red winter wheat in the United States was 549 dollars/ton, an increase of 11 dollars from a week ago; the price of .
2 soft red winter wheat in the United States was 476 US dollars / ton, unchanged from a week a.

 

On the Euronext in Paris, the most actively traded December wheat futures settled at 414 euros/ton on Friday, up 8% from a week ago; Chicago wheat futures fell 7% over the same peri.

 

The wheat crop in France, the European Union's top wheat producer, has deteriorated further as record-high heat has put pressure on crop growth, analysts sa.
As of May 16, the good-to-excellent rate of the French soft wheat crop fell to 73%, the first time it was lower than the same period last year, according to data from FranceAgriMer, an agricultural office under the French Ministry of Agricultu.
In addition, the growing conditions of crops vary greatly from place to pla.
In the Île-de-France region around Paris, only 45 percent of the soft wheat was rated good, while in the Hautes-de-France region, the most northerly major wheat-producing region, 77 percent of the wheat was good or go.

 

Meteo France said hot and dry weather continued across France, with temperatures expected to exceed 35 degrees Celsius in many cities over the weekend, as wheat is currently in an important growing season, and the dry and hot weather caused soil moisture to evapora.
France may have its hottest month on record in May, which could dampen the outlook for French wheat producti.

 

A French technical research institute said on May 19 that the extremely dry weather had caused serious damage to some grains, and a lot of rain was needed in early June to avoid damage to crops in the main producing are.

 

Showers on Friday and the next few days could help crops recover, traders said, though like the erratic weather at the start of the week, the rains could be errat.

 

On May 12, FranceAgriMer lowered its forecast for French soft wheat exports to third countries in 2021/22 by 250,000 tons, from 5 million in April to 25 million, due to weaker overseas dema.
French wheat exports to EU member states were also lowered to 8 million tonnes from 1 million tonnes, while warnings that rains are urgently needed to avoid damage to cereal crops ahead of this summer's harve.

 

On May 12, the consulting agency Strategic Grains lowered its forecast for EU soft wheat production in 2022/23 (July-June) to 122 million tons, 500,000 tons lower than the April forecast, and 2021/2 of 133 million tonnes decreased by 1 million tonnes or 1%, reflecting lower plantin.
In addition, dry weather in Europe, especially in France, threatens yield potenti.
Additionally, Strategic Grains lowered EU soft wheat exports for 2021/22 to 29 million tons, down 5 million tons from April, as Russian wheat exports were higher than expect.
The agency raised its forecast for EU soft wheat exports in 2022/23 to 38 million tonnes, up 500,000 tonnes from the previous mon.

 

The European Commission's 2022/23 supply and demand report released on April 29 showed that EU wheat exports in 2022/23 will reach a record 40 million tons, unchanged from last month's expectations and up from 33 million tons in 2021/2 EU winter wheat production in 2022/23 is at 131 million tonnes, down from the March forecast of 133 million tonn.

 

EU-27 wheat exports reached 295 million tonnes in 2021/22 (July to June) as of May 15 (277 million tonnes last week, compared to 287 million tonnes in the same period last year), according to European Commission da.
The volume was 13 million tons (09 million tons last week and 78 million tons in the same period last yea.
The number one buyer is Algeria, but imports are still lower than the same period last year, with 5 million tons of wheat imported so far (46 million tons last week, 28 million tons a year earlier); its share is 13% (12% last week, 21% a year earlier) .
The second largest buyer was Egypt, which imported 36 million tons (36 million tons last week, compared with 01 million tons in the same period last year); its share was 13% (14% last week and 5% in the same period last yea.
The third largest buyer was China, which imported 13 million tons (13 million tons last week, compared with 77 million tons in the same period last year), with a share of 3% (4% last week and 4% in the same period last yea.

 

The port of Rouen exported just 54,500 tonnes of milling wheat in the week to May 18, mainly to Morocco, data from French port operator Haropa show.

 

Investment funds and financial institutions were net long 186,215 contracts in the Euronext milling wheat futures and options market as of May 13, down from 188,722 contracts a week earlier, Euronext holdings data show.

 

The euro was trading at $055 on Friday, compared with $04 a week a.

 

Note: 1 Euro is equal to 055 USD