Despite ample wheat supply in the Black Sea region and competitive pricing, with Russian milling wheat (12.5% protein) quoted at $217.50/t (FOB – Novorossiysk) grain prices have risen as we move towards the end of the month.
The latest AHDB Grain Market Report shows UK feed wheat futures (Nov-24) at £196.00/t, gaining £6.00/t from the close of the previous week, 19th July. The May-25 contract also gained over the same period, currently standing at £205.90/t.
Short covering as traders buy back previously established short positions has helped but uncertainty over how impactful heavy rains in western Europe have been for harvests in France and Germany has been the key factor.
Paris rapeseed futures tracked weakness in the oilseeds complex as Chicago soyabean futures fell following expectations of lower demand while Malaysian palm oil futures depreciated in response to the Malaysian Palm Oil Association estimating greater production in July.
As a result, rapeseed prices have also gained. Paris rapeseed futures (Nov-24) are currently at €492.75/t, the May-25 contract fell at €493.00/t.
