Frontrunner - 11th June 2021
The week began with markets on an upward trajectory. Weather is hot and dry in Northern USA, Canada and throughout Europe. Any rain we might see is likely to be confined to the Black Sea region. Despite the dryness, the EU wheat crop should achieve a good volume. However, it will not be an early harvest this season, which raises concerns over quality and, subsequently, prices are generally supported.
On Tuesday, Algeria purchased 450,000 tonnes of wheat for August delivery, most likely originating from France, Germany and the Baltics. Despite this tender, inflated freight rates and current spreads make France one of the more expensive origins currently, so some price correction could be seen if French wheat is to compete in the export arena going forward.