Corn market is looking forward to new US forecast

08-09-2021 | |
Photo: Canva
Photo: Canva

In Chicago, corn prices fell for the September contract. Wheat market held up well.

The US Department of Agriculture has already announced that the forecasts for corn will be adjusted in the Wasde report, which will be released on Friday, September 10. In anticipation of this, the prices for this product have already fallen in the past week.

In Chicago, corn market prices for the September contract fell by 9% compared to the previous week. The effect on the next contract was therefore considerably greater than the decrease of about 5% in the price on delivery in December.

In addition to the news expected later this week, lower export demand for corn is also leading to falling prices in Chicago. In addition, there is the question of how much damage from Hurricane Ida will hinder corn exports from the US ports in the Gulf of Mexico in the longer term. And precipitation in important production areas in the US also helps to bring prices down.

Wheat price holds up

The wheat market, on the other hand, held up well over the past week. In Paris there was a price drop of 2.5% before September delivery, but in the longer term the prices were little below those of a week earlier. The same goes for trading in Chicago.

For deliveries up to and including May next year, prices in Paris are still close to € 250 per tonne. And for the 2022 harvest, futures market prices are at or just above € 220 per tonne. This indicates that wheat prices are quite stable this year.

German grain growers in particular are currently drawing extra hope from the quality problems facing French wheat cultivation. Due to the disappointing hectolitre weights in France, the German grain sector hopes to be able to do more business with important customers in North and West Africa.

No drastic change is expected in the wheat market in the short term. This applies to both futures market trading and the physical market. It is not yet clear how well the larger supply of feed wheat in the EU is absorbed by the market. However, for the time being the price formation of feed grain has been able to maintain itself.