Agriculture & Food

October 24th news:French wheat spot prices have risen in the past week.Rising Chicago wheat futures and Euronext wheat futures helped support higher wheat spot prices.

On Thursday(October 21),the delivery price of first-class French wheat at the port of Rouen in France was US$327/ton,an increase of US$9 from a week ago.The price range for the past 52 weeks has ranged from US$240 to US$329 per ton.

The price of second-class wheat in Shanghe,Argentina was US$296/ton,down by US$4 from a week ago;the price of No.2 hard red winter wheat in the United States was US$348/ton,up by US$6 from a week ago;the price of No.2 soft red winter wheat in the United States was US$322/Ton,up$12 from a week ago.

On the Euronext in Paris,France,the most active March 2022 wheat futures on Friday closed at 275 euros/ton,up 4.75 euros or 1.76%from a week ago,while Chicago wheat futures rose 3%over the same period.

On Friday,Euronext March wheat hit a new contract high of 275.25 euros.Rumors that France will sell more wheat to China will help support higher wheat prices in the EU.

Private analysis agency-Strategic Grains Corporation raised EU wheat production in the 2021/22 season to 129.5 million tons,which is 400,000 tons higher than the previous forecast and an increase of 8.8%over the previous year.According to the report,the increase in wheat prices has led to a decline in the competitiveness of EU wheat in the export market and the feed industry.However,Strategic Cereals still raised its forecast for EU soft wheat exports by 1 million tons in 2021/22 to 32 million tons,partly because Bulgaria,Romania and the Baltic countries have already exported large amounts.Strategic Grain Company said that although the forecast value of wheat production has been slightly increased,the supply of wheat this year is still very tight.

The October monthly report issued by the European Commission shows that the forecast value of wheat production in the EU-27 for the 2021/22 period is 132,043 million tons,which is 11.9%higher than the 118 million tons in 2020/21 and 7.9%higher than the five-year average.Among them,the sown area increased by 4.7%year-on-year,and the yield increased by 7.0%year-on-year.Among them,French wheat production increased by 6.9 million tons or 23.7%year-on-year,and Romania's output increased by 5 million tons or 78%.The European Commission maintains the EU's general wheat export forecast data for the 2021/22 season(July to June of the following year)unchanged,still at 30 million tons,compared with 27.4 million tons in 2020/21.

According to data from the European Commission,as of October 17,wheat exports from the 27 EU countries reached 8.67 million tons(8.37 million tons a week ago)in the 2021/22 season(July to June of the following year),and imports were 683,000 tons(651,000 tons a week ago).Algeria is the number one destination,importing 1.208 million tons(1.177 million tons last week),accounting for 13.9%(14.1%last week);Egypt imported 939,000 tons,accounting for 10.8%.

At the port of Rouen,the number one wheat export port in France,the port operator Haropa said that as of the week of October 6,49,000 tons of wheat were exported from the port of Rouen,32,250 tons were shipped to Algeria,and 19,750 tons were shipped to China.

Euronext position data shows that as of October 15,investment funds and financial institutions held a net long position of 153,690 contracts in the Euronext milling wheat futures and options market,down from 154,958 contracts a week ago.

On Friday,the euro exchange rate was 1 euro to 1.16 U.S.dollars,and 1 euro to 1.16 U.S.dollars a week ago.

Note:1 Euro is equal to 1.16 US dollars