The price of wheat, at the highest level in the last 15 months

The price of wheat futures reached, this week, the highest level in the last 15 months on the Paris Stock Exchange, amid the intensification of fears related to deliveries from the Black Sea area, after the reduction of estimates for the harvests in Russia and Ukraine, as a result of the weather persistent droughts, reports Reuters.

The price of wheat for delivery in September, the most traded on the pan-European stock exchange Euronext, rose during Monday's meeting to 269 euros per ton, the highest level in the last 15 months. The quotation of this contract increased by almost 5% in a week, respectively by 18% during the month of May.

"Concerns about the decrease in supply in the Black Sea region continue to increase prices", say the specialists of the German bank Commerzbank.

A lack of rainfall and a late freeze is expected to affect crops in Russia, the world's largest wheat exporter, prompting some observers to revise their estimates of this year's harvest. For example, the consulting firm IKAR on Monday revised its estimates regarding Russia's wheat production from 83.5 to 81.5 million tons. Just a month ago, IKAR estimated production at 93 million tonnes and exports at 52 million tonnes.

In the case of Ukraine, the Union of Cereal Traders (UGA) revised its estimates regarding the harvest of cereals and oilseeds this year, as a result of the reduction of the sown areas and the dry weather in May.

The deteriorating outlook for the Black Sea region has also redirected attention to the mixed conditions in other wheat exporting areas, such as the European Union, where the main producer (France) is affected by persistent rains.

"Excessive humidity is maintained in most of Western Europe, while dry conditions persist in Ukraine and Russia", draw the attention of the analysts of the consulting firm Argus.

On the grain exchange in Chicago (Chicago Board of Trade (CBOT), where global reference prices are set, the quotation of wheat for delivery in July rose by up to 3% throughout yesterday. At 08.44 local time, the price was $7.1/bushel, up 0.6% from the previous session.Earlier, the price had risen to $7.20/bushel, a level not reached since late July last year. .