Grains - Grain Products

Wheat: bakeries try to absorb additional costs with "Corona-Cent"

June 8, 2020 2:07 PM, Der AUDITOR
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FRANKFURT. The wheat markets started the new week slightly weaker. Profit-taking on the futures exchanges and rainy weather on the Black Sea and parts of Western Europe were reasons for this. The US wheat harvest is likely to have progressed considerably further due to good weather. Via a "Corona-Cent", the Kaiserslautern bakery Barbarossa in Rhineland-Palatinate in Germany is letting consumers participate in increased additional costs.

US wheat in Chicago was trading at USD 515.50 per bushel in the morning, 2.2% lower than yesterday. In Paris, wheat fell by 0.7% to EUR 186.25 per metric tonne at the front and by 0.9% to EUR 207.00 per metric tonne at the Black Sea. According to US trade, profit taking put pressure on prices. The US wheat market rebounded after a weekend of hot temperatures and little rainfall in the Midwest, traders said, even though the good weather may have accelerated the winter crop in Texas and Oklahoma, which showed 3% progress last week across the US and may now have progressed 25%. However, it remained too dry in western Great Plains. A weaker US dollar exchange rate and the good export result for US wheat also supported the market. Export shipments reached 752,800 metric tonnes, the third largest weekly export in the past season in the USA. The crop prospects for Russia and Ukraine improved somewhat after repeated rains on the Black Sea, US brokers said. For Western Europe, US traders did not see any significant improvement in the wheat crop, with some heavy rainfall in parts of France, Germany and especially Poland, and more rainfall expected next weekend.

Wheat, daily price development

Milling wheat (12/220/76)

Parity

EUR/mt

Diff.

Rouen, FOB

187.00

-1.00

Creil, FOB

176.00

-1.00

Hamburg, DDP

198.00

0.00

Westphalia, DDP

199.00

0.00

Rhineland, DDP

199.00

0.00

Upper Rhine Region, FOB

190.00

0.00

Feed wheat (72/73)

Parity

EUR/mt

Diff.

Netherlands, CIF

200.00

0.00

South Oldenburg, DDP

202.00

0.00

Westphalia, DDP

200.00

0.00

Upper Rhine Region, FOB

190.00

0.00

Trade sources

Bakeries often remain stuck on Corona-related additional costs
Wheat on the French spot market fell by EUR 2.00 per metric tonne. According to FranceAgrimer, the credit rating for French wheat stocks remained unchanged at 54% good to excellent plants, the worst value in nine years. On the German spot market, the focus is on the new crop. Sellers and buyers are not yet finding each other in terms of price. Traders expect a price decline of EUR 7.00 to 8.00 per metric tonne at the June price, for which there is probably hardly any commodity. Mills and baked goods manufacturers find this level too high due to uncertain economic development. The "Corona-Cent" campaign of the Kaiserslautern bakery Barbarossa with 85 branches in Rhineland-Palatinate in Germany met with divided response from consumers, who added three Corona-Cents to the sales price for considerable additional costs for disinfectants, additional high stands and much more. The scale of consumer reactions ranges from indignant to very much understanding, the management said. The fact that some customers show little understanding for corona-related additional charges is also made clear by the example of the Nobis Printen bakery in Aachen, which has moved away from its cleaning fee for disinfecting the café tables.

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