In contrast to UK feed wheat futures, the Paris futures market has a milling standard specification. Under normal circumstances traders may elect to deliver physical wheat against their futures sales at harvest or buy futures as a hedge against milling wheat export sales they make. However, the adverse French weather and delayed harvesting has seen lower than average specific weights, particularly in northern France, and has left traders unable to source wheat of a sufficient standard to meet the specification required for export (78kgs) or the specification required for futures wheat (76kgs).

This has forced traders with short futures positions to buy back their contracts rather than deliver physical wheat. Last week, this resulted in the nearby September position hitting a €30/t premium to the next December position and saw prices rise to their highest level since 2013. 

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