Wheat price on the Chicago Board of Trade (CBOT) rose to an eight-month high of $211.3/MT on 18th September, mainly driven by record sales to China. Strong export demand and limited shipping cargoes due to high Chinese demand for maize and soyabean underpinned wheat export capacity, causing US wheat prices to rise at the beginning of September.
In addition, US 2020/21 wheat production is expected to fall by 4.3% y-o-y to 50 million tonnes, and down 7% on the five-year average, thus supporting price increases. The expected decrease in output is mostly due to higher than average precipitation leading to the smallest winter wheat planted area in more than a decade, according to the USDA.
Meanwhile, Euronext wheat prices continue to rise, reflecting increases for CBOT wheat. Also, concerns due to projected lower yield for 2020/21 as a result of dry conditions across the region continues to add upward pressure to prices. As of 23rd September, Euronext wheat price was €193.7/MT, up 5.8% m-o-m and 13.2% y-o-y.
From economical to political, all the factors impacting the have been analysed to provide a market outlook for the next three months. Mintec’s market outlooks 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. Please visit our to find out more.