Grains - Grain Products

Wheat: trade association demands corona cheques

May 7, 2020 12:08 PM, Der AUDITOR
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FRANKFURT. The wheat futures markets held on to the rising price trend, while the cash market largely ignored the price gains. Rain could cause the markets to cool down over the weekend, but that is not yet certain. Western Europe is heading for a smaller wheat crop. The German Retail Association (HDE) is demanding corona cheques from the state to revive the domestic economy.

The wheat market continued its upward trend. US wheat in Chicago was trading at just under USD 5.25 per bushel this morning, a rise of 0.7% compared to yesterday. In Paris, the front date rose by 1.1% to EUR 203.50 per metric tonne, and on the Black Sea by 1.0% to USD 219.50 per metric tonne. The price development in Hamburg remained remarkable, where milling wheat rose by EUR 2.00 to EUR 208 per metric tonne FOB, only residual quantities are still available, while the rest of the spot market largely ignored the price rise in Paris, the May contract will soon expire. For the October-December term, milling wheat rose by EUR 1.00 to EUR 191 per metric tonne FOB Rhineland and Westphalia. This means that new crop dates have risen slightly. Weather and export developments remained decisive. The EU exported 28.8 million metric tonnes of common wheat, which is an increase of 64% over last year. France accounted for 9.8 million metric tonnes, Romania for about 4.79 million metric tonnes and Germany for 3.8 million metric tonnes. France's wheat crop was 5.3 million metric tonnes lower at 34.28 million metric tonnes and Germany's declined by 700,000 metric tonnes to 22.33 million metric tonnes.

Wheat, daily price development

Milling wheat (12/220/76)

Parity

EUR/mt

Diff. EUR/mt

Rouen, FOB

182.00

0.00

Creil, FOB

176.00

0.00

Hamburg, DDP

208.00

2.00

Westphalia, DDP

200.00

1.00

Rhineland, DDP

200.00

0.00

Upper Rhine Region, FOB

191.00

0.00

Feed wheat (72/73)

Parity

EUR/mt

Change

Netherlands ,CIF

200.00

0.00

South Oldenburg, DDP

200.00

0.00

Westphalia, DDP

198.00

0.00

Upper Rhine Region, FOB

190.00

0.00

Trade sources

Export price level up again
In Europe agriculture is waiting for more rain, which is unlikely in the next week. Temperatures will also rise again by the weekend. Wheat prices have risen slightly in export markets, as the export stops introduced by Russia and the Ukraine could reduce supply in the old season. The export market has been quiet recently, with only Jordan buying 120,000 metric tonnes of wheat yesterday. In view of Russia's wheat crop, the areas of Stavropol and Krasnodar are considered critical due to lack of precipitation. In the USA, estimates for the wheat crop are 3.8% below the April forecast. The German Trade Association (HDE) is calling for a state rescue fund to support the industry in the corona crisis. A complete reopening of all shops would not mean an end to the problems for the trade, stressed HDE general manager Stefan Genth. He therefore pleads for corona cheques of 500 euros per German citizen to revive the domestic economy.

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