Markets took a turn downwards this week. Having recovered last Friday (August 17), prices began to drop at the beginning of this week. By Wednesday, LIFFE wheat had hit £181.75/t (€200.99/t) – down from £189/t (€209.01/t) on Friday. The drop is somewhat affected by an expected tightening of exports.
For example, Canadian wheat production is expected to decrease in the 2018/2019 season, despite an increase in wheat area. Exports are expected to be down as a result.
As harvest draws to a close for the main cereal crops across the EU, it is clear that many of the major grain producers are down significantly on grain production.
LIFFE
LIFFE wheat fell to £186/t (€205.69/t) on Monday (August 20) and hit a low of £181.75/t (€204.03/t) on Wednesday (August 22).
This price recovered somewhat on Thursday (August 23), when it climbed back to £184.50/t (€204.07/t). This recovery was short lived, however, as the price fell below £180/t (€199.05/t) on Friday. It closed at £179.65/t (€198.72/t).
MATIF
The MATIF wheat price for December dropped to €211.75/t on Monday (August 20) from €214.75/t on Friday (August 17).
Another downward step followed on Tuesday (August 21), when the price fell to €206.75/t and to €205.75/t on Thursday (August 23). The week’s price closed at €202.75/t on Friday (August 24).
CBOT
Chicago Board of Trade (CBOT) wheat tumbled this week. Having reached 560.50c/bu (€177.39/t) last week, the price took a big drop on Monday (August 20) to 542.25c/bu (€171.38/t).
The price then fell steadily during the week to 527.25c/bu (€166.64/t) on Tuesday (August 21), 526c/bu (€166.32/t) on Wednesday (August 22) and 522c/bu (€165.05/t) on Thursday (August 23). By Friday it was trading at 514c/bu (€164.88/t).