As France moves further into its wheat harvest, a clearer picture of the crop quality is beginning to emerge. This week, Paris-based consultancy group Agritel indicated that wheat yields so far in the French harvest are “disappointing” and much below normal levels.

As a result, European wheat prices soared on Thursday to their highest point in over a month. The wheat rally also helped drag European maize (corn) prices higher.

The wheat rally in Europe served to boost Chicago prices for the crop but the gains were more subdued. US grain prices plunged earlier this week after a report from the USDA showed US crops to be in excellent condition.

Europe

On the Euronext exchange (MATIF) in Paris, the news of poor wheat yields in France helped boost cereal prices.

December 2016 delivered milling wheat surged more than €5/t during Thursday’s trade to finish at €168/t, while December 2017 wheat finished at €179/t.

The wheat rally also dragged maize (corn) prices higher with November 2016 maize gaining €3/t to move to €164/t, while November 2017 maize finished below €172/t.

Rape prices have improved as this week has worn on with November 2016 rapeseed improving to €367/t, while November 2017 rapeseed finished Thursday’s session at €364/t.

Chicago

In Chicago (CME), grain prices remain down overall this week after recording heavy losses on Tuesday as the USDA reported crop conditions as excellent.

December 2016 wheat finished at $162/t (€147/t) but is still down as much as $5/t since Monday, while December 2017 has fallen back to $189/t (€172/t).

Chicago corn prices have endured heavy losses this week despite a forecasted hot spell in the US Midwest. December 2016 corn has fallen $9/t since the beginning of the week to $134/t (€122/t), while December 2017 corn is down to $147/t (€133/t).