Record European heat pushes French wheat prices to three-month high

French wheat prices climbed to a three-month high after record-breaking temperatures across Europe raised concerns about crop stress and potential yield losses.

Earlier this week, France set a new national temperature record and the extreme heat spread to Germany, Poland and the UK. Although some winter crops already harvested have some protection, late-season winter crops and all spring crops remain vulnerable.

Platts, part of S&P Global Energy, assessed wheat 11% FOB and CPT Rouen prices at Eur211/metric ton and Eur209/mt, respectively, on June 25, the highest levels since March 16.

There is now significant damage to spring wheat, with corn and sunflowers facing a dangerous period, a French broker said.

Another broker noted that corn is about to begin flowering, adding that temperatures around 40 degrees Celsius (104 Fahrenheit) are particularly harmful. The heat wave in France is gradually coming to an end, with Friday expected to be the last hot day, the broker said.

"The system is now shifting east, bringing high temperatures to Germany and Poland for a couple of days before exiting Europe. It remains to be seen how crops in Germany and Poland handle these short but intense conditions," the broker said.

Wheat harvest is underway in southern and Atlantic coastal regions, with winter barley moving north of the Seine, another broker said.

"Winter grain harvest has already begun, offering some buffer for wheat and barley, but spring barley and corn remain highly vulnerable," the second broker said.

French wheat is once again drawing support from weather concerns, recovering part of the losses recorded during the sharp correction seen at the end of May, an European wheat trader said.

French soft wheat to new African markets

French soft wheat exports from Rouen continued to broaden during the June 11-24 period, according to Haropa Ports' weekly schedule.

With exporters increasingly looking beyond Morocco, a longstanding destination, shipments shifted after import duties on soft wheat were temporarily reinstated to safeguard what is expected to be one of Morocco's strongest grain harvests in recent years.

Rouen shipped 107,284 mt of soft wheat in the week to June 24, up from 69,081 mt in the week to June 17, as loadings shifted from Morocco toward Burkina Faso, Mali, Côte d'Ivoire and Spain, the weekly port schedule showed.

The latest week's total was supported by two large June 20 departures, carrying 36,200 mt to Burkina Faso, while another loaded a combined 39,582 mt for Abidjan, Burkina Faso and Mali via Côte d'Ivoire, according to the port schedule.

The single largest country destination across the two-week period was Burkina Faso, with 46,126 mt, followed by Portugal at 36,140 mt, Mauritania at 32,941 mt, Spain at 31,502 mt, Mali at 21,588 mt and Côte d'Ivoire at 8,068 mt.

African destinations accounted for 108,723 mt, 62% of the two-week soft wheat total, underscoring Rouen's continued role in supplying West and North African milling wheat markets.