Grains - Grain Products

Wheat: rainfall causes markets to calm down

April 28, 2020 1:07 PM, Der AUDITOR
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FRANKFURT. The wheat markets are showing clear signs of weakness. According to the trade, demand for flour has continued to decline. Concerns about rising insolvencies of bakeries, especially in cities, are being addressed because the companies are suffering heavy losses in sales due to the shutdown. The weather forecasts remain rainy in Western and Eastern Europe until Sunday.

In the morning, wheat in Paris was down 1.1% to EUR 195.75 per metric tonne, while Chicago was down 0.9% to USD 5.20 per bushel. In the USA, the weekly export inspection of 501,333 metric tonnes remained below last week's result. This included 36,000 metric tonnes of US wheat going to Brazil. The Crop Progress Report showed 54% good to excellent stocks of US winter wheat, a good 3% less than last week and 10% weaker than last year. The US summer wheat sowing was 14% complete. The focus was on the weather. There was some heavy rainfall in France yesterday. In the next few days, this should also reach England, Eastern Europe and the Black Sea region, including Southern Russia and Eastern Ukraine. For the next two weeks, precipitation is predicted in Western Europe again and again, so that wheat field crops can recover from the drought. At 27.97 million metric tonnes of wheat, EU exports are 63% above the weak exports of last year. The Russian Ministry of Agriculture confirmed that grain exports will be suspended until the new marketing year. Kiev's wheat export reserves are also almost exhausted. Trade is therefore concentrated on EU goods, which are sufficiently available in Southern Germany, France and the Eastern EU.

Wheat, daily price development

Milling wheat (12/220/76)

Parity

EUR/mt

Diff. EUR/mt

Rouen, FOB

190.00

0.00

Creil, FOB

184.00

0.00

Hamburg, DDP

202.00

-2.00

Westphalia, DDP

198.00

-2.00

Rhineland, DDP

197.00

-3.00

Upper Rhine Region, FOB

191.00

-1.00

Feed wheat (72/73)

Parity

EUR/mt

Diff. EUR/mt

Netherlands, CIF

199.00

-1.00

South Oldenburg, DDP

200.00

-1.00

Westphalia, DDP

198.00

-1.00

Upper Rhine Region, FOB

190.00

-1.00

Trade sources

Worries about rising insolvencies 
In Western Europe, worries about rising insolvencies of bakeries are on the rise. Of the approximately 10,500 bakers in Germany, more than 80% reportedly complain of significant declines in sales. People who work in a home office do not travel, do not get a snack, and do not go to the canteen, they said. Because of the losses caused by the corona crisis, the Hamburg bakery chain Dat Backhus had recently filed for bankruptcy with the aim of a planned insolvency. Sales had dropped by about 40%, according to Heinz Bräuer GmbH, the company behind the well-known brand name. In Austria, the catering trade will be allowed to welcome guests to their restaurants again from mid-May. Also in this country, restaurateurs plead for the new start of a responsible gastronomy. Already announced was the lowering of the value added tax of the catering trade starting from 1 July from 19 to 7%, unfortunately limited to one year. The wholesale association Foodservice e.V. has compiled recommendations on how business operations for restaurants, cafés and snack bars could look after opening.

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