July 18, 2013

 

European wheat harvest increases due to improved weather
 

 

European wheat futures have recovered from a one-week low and are now in step with the US market.

 

Despite some key harvests being in the early stages, the European market has already showed some modest gains and could improve further as it awaits clear indications about the expected large supplies from northern hemisphere crops.

 

In France, benchmark milling wheat was up by 0.64% at €195.25/tonne (US$250/tonne), moving away from Monday's one-week low of €193.75/tonne (US$248.08/tonne). However, in the southwest of the country, there have been reports of disappointing protein levels in some of the cuttings, an indication of the wet spring that hindered fertiliser applications.

 

French corn prices finished significantly higher than Monday's one-week low and settled at €222.50/tonne (US$292/tonne), a rise of €2.00 (US$2.56), or 0.91%.

 

British wheat prices also increased this week by £1.55 (US$2.33) or 0.92% at £169.50/tonne (US$255/tonne), an increase of 10.3% compared to last year's £153.65/tonne (US$231.15/tonne) in the same period. And, with excellent weather forecasted for the rest of the week, the crop outlook should continue to improve.

 

Germany's wheat harvest outlook is also improving with the good weather and German traders have suggested that the wheat harvest will likely start in early August.

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