New week and new high for spot Euronext wheat which has just reached its highest level since last year’s Valentine’s Day [February 14].
The key E200-per-tonne level is now in sight.
Global demand from top importers such as Algeria or Egypt is still robust as per the most recent from the European Commission.
As of January 20, the EU had already exported 15.7m tonnes of wheat since the beginning of the marketing season compared with just 9.2m tonnes in 2018-19 and 12.8m tonnes on a five-year average.
France accounts for more than a third of this year’s EU wheat exports followed by Romania (19%), Bulgaria (9%) and Latvia (9%).
However, the prolonged French pension reform strike which started on December 5 has hampered grain deliveries to the ports and as such, the competitiveness of the French origin has deteriorated due to additional transport cost with railways shut.
That said European wheat values could still continue to be supported short term with Russian prices standing at fresh season highs and until more is known regarding the 2020 Black Sea wheat harvest.
Benjamin Bodart, CRM AgriCommodities