The Q2 2020 average price of Euronext wheat was down 1% compared to the previous quarter. Despite strong demand in April, prices fell due to increased market uncertainty caused by the coronavirus pandemic. Meanwhile, dry weather across some areas of Europe and Russia added some upward pressure to prices.
The EU is expected to face strong competition from Russia. Russia is projected to harvest a higher than average crop, which if realised, will enable Russia to overtake the EU as the world’s largest wheat exporter.
Similarly, the Q2 average price of CBOT wheat was down 4% q-o-q. US feed wheat consumption is forecast to fall significantly in the 2020/21 season, by 26%, to a total of 2.7m tonnes compared to 2019/20. Record maize (corn) production and a lower wheat harvest projected for 2019/20 are likely to encourage buyers to shift to maize due to price competitiveness.
From economical to political, all the factors impacting the wheat market have been analysed to provide a market outlook for the next three months. Mintec’s market outlooks (schedule) provide insights on factors shaping the market dynamics of various commodities, providing the opportunity for market participants to stay ahead of factors that will impact procurement decisions.