Experts expect an increase in the price of wheat globally in the second half of September

Despite negative news about new wheat crops and geopolitical conflicts, wheat prices on the Chicago and Paris exchanges have continued to drop. The December wheat contract on the Chicago exchange peaked at $7.60 per bushel in May 2024 and dropped to $5.28 per bushel in August 2024. The December wheat contract on the Paris exchange peaked at EUR274.50 per ton in May 2024 and dropped to EUR208.75 per ton in August 2024. Despite this, worldwide demand for wheat remains strong and global wheat carryover stocks are expected to decrease to 256.62 million tons by the end of 2024/25. Egypt and Algeria have both attempted to purchase large amounts of wheat, and Iraq has approved a plan to build five grain silos that can store 300,000 tons of grain.

A growing number of analysts and grain traders are wondering why wheat prices on the Chicago and Paris (Euronext) exchanges have continued to slide, despite unfavorable news on new wheat crops in a number of major bread and feed producing and exporting countries. grain. In addition, markets have recently been largely unresponsive to geopolitical conflicts occurring in various regions of the world. At the end of May 2024, the price of the December wheat contract on the world's largest grain exchange - Chicago, reached a price peak near $7.60 per bushel, or about $280 per ton, and on August 23, 2024, the price of December futures eroded to $5.28 per bushel or $194 per ton. On the Paris exchange, the December wheat contract marked a price peak of EUR274.50 per ton on May 27, 2024, and at the end of last week its price collapsed to EUR208.75 per ton. How long will wheat futures trade at these low prices? Isn't it time to get the shoppers moving? (Is wheat in bulk buying territory?) ...