WHEAT PRICE HISTORY 2022-2024
Prices shown on this slide will not be the prices one has to pay. Everything depends also on farmers if they are willing to sell on these price levels. Especially in degreasing wheat price periods, the suppliers are not able to buy as wheat is physically not available on the market as farmers don´t want to sell on these levels and will further wait on increasing prices.
On the bottom of this chart months are shown, on the right-side sales price €/t. Currently MATIF level is around 240€/t, but the suppliers must buy for around 40-50€/t on top as the wheat quality of this year harvest is very poor because of too much rain before and during the wheat harvest about weeks.
This results into very bad in falling numbers (baking quality) and protein levels. To bake bread, suppliers need to have a certain protein content to build up a dough matrix but this kind of A-grade wheat level this year is rare and expensive. Suppliers have to pay this amount of 40-50€/t on top of MATIF price, called “Premiums” for the traders. Therefore, the suppliers are buying currently for around 280-290€/t of wheat which is more or less the price level of the past 12 months. The part of wheat which will be used for animal feeding is high this year.
Wheat Pricing Parameters 2022 -2024
- Higher labour costs between +6-8% in 2023
- Higher electricity and gas prices then before the war (although gas price came down again but not on 2021 level)
- Higher prices for packaging
- Ingredient prices ie. for yeast, are still on the same high level as last year (reason for that is a high price for sugar melasse in Europe to grow the yeast bacterias)
- Double toll costs for our container truck deliveries from our warehouse
to Port Hamburg/Bremerhaven etc.
Suppliers do expect that wheat prices will before 2023 and Q1+Q2 2024 on this price level. According to them, everything depends of course also on weather conditions in upcoming winter and spring time (dryness, too much rain, very deep minus temperature etc.) but also on further legal requirements on reduced use of fertilisers on the fields. But they do comprehend that there is enough wheat volume on the market to secure all crumb productions furthermore.
Source:
1. Ulmer
