Wheat prices in France are at record highs amid an ongoing heat wave across Europe.
French wheat prices hit a record high on July 14 due to renewed geopolitical tensions around the Black Sea and worsening weather across the European continent.
Wheat prices out of France reached 219.25 Euros per metric ton ($250.40 U.S.), the highest level on record.
The summer heatwave that is sweeping across Europe is expected to further strain crops in France, with wheat seen as particularly vulnerable.
Some wheat that has already been harvested has partial protection, but the market is pricing in ongoing weather issues amid temperatures above 40 degrees Celsius.
In France, about 59% of the wheat crop this year has now been harvested, according to government data.
The European Association of Cereals and Oilseed Traders forecasts expected wheat production (excluding durum) at 140.8 million metric tons, down from an earlier estimate of 143.7 million mt
Severe heat and dryness in France and Eastern Europe are expected to shrink this year’s wheat crops, driving prices higher.
Available wheat stocks are currently estimated at about two million metric tons, equivalent to roughly five months of Europe’s milling demand.
Also complicating the outlook for European wheat this year are continued shipping disruptions in the Middle East due to the ongoing war between the U.S. and Iran.
