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June 30, 2022

Price of Romanian wheat reaches minimum of past four years

The price of wheat dropped suddenly by 10 per cent from EUR 164 per ton to EUR 147 per ton in only a week, so that the wheat production is not going to bring much money to the economy although the increase in amount is at least 2.7 per cent compared to last year, reports a zf.ro analysis.
The price drop in July is the second largest of this period of the past four years. The reduction of the wheat price has a similar trend with the quotation on Paris Stock Exchange which is also at the minimum of the past four years. “We estimated this before harvest we risked and signed contracts prior to the harvest for EUR 160 per ton. We have sold 20,000 tons of wheat and we have preserved 10,000 tons,” says Stefan Poienaru, owner of Agrofarm Holding company, one of the major farms in southern Romania.
The major quantities sold and carried in a very short amount of time revealed major infrastructure and logistics issues so that hundreds of trucks remained stuck on the road awaiting to discharge their cargo in Constanta port. The pressure on logistics is even higher as grain from other neighbouring states will be exported through Constanta and because the freight has a high degree of humidity and will pass the driers. Romania will have a harvest of about 7.6 million tons of wheat, 2.7 per cent more than last year, which is a record for the last decade, indicates the forecast revealed two days ago by the European Commission.

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