As the price of wheat kept decreasing last week, finally, on Friday, the wheat price was increased. According to the USDA report, the storage of wheat is less than expected. That will make the wheat price higher.

At the same time, however, Russia decided to raise the wheat price instead of limit the export. The European future climbed 2 percent on Friday, recovering from a six-week low hit earlier in the day.

Traders reported on Thursday sales of European Union wheat to Iran, Morocco and Algeria, which together with recent purchases by Egypt would bring to over 1.6 million tones volumes for shipment between September and December. Feed wheat futures in London were also higher with November up 4.8 pounds at 202.75 pounds a tone.

However, forecasts are putting this year’s grain maize crop at 3.6 million tonnes which would be up by a dramatic 1.2 million tonnes on last year and so provide the local market with a sharply increased volume of feed grain supplies. The prospects of this huge increase in maize production were restraining trade in the market this week. Because corn and wheat are substituted, the price of corn will decrease in long term and it will make the wheat cheaper in long term.