Corn prices in the US rise sharply

03-11-2021 | |
Photo: Canva
Photo: Canva

The corn price on the futures market in Chicago rose by about 5.5% last week.

In Paris, the prices for this product fell, mainly due to price pressure from the harvest. In the United States, the corn crop is hampered by precipitation. In addition, there is more demand for corn from Mexico. Both factors drove corn prices on the Chicago futures market last week.

Delays in corn harvest

In France, the maize harvest is also experiencing delays. At the moment, only a little more than half of the corn has been harvested. A year ago at the same time almost 90% of the country was already there.

More maize sold in Germany

Partly due to the stagnation of the harvest in France, buyers are buying more maize in Germany. Much more than in other years, it is believed.

Corn prices in Paris under pressure

As a result, corn prices in Paris have come under some pressure. The November contract fell in price by almost 4%. The first-term contract thus fell below the January price level, which fell by 1.3% to € 240.50 per tonne.

Wheat price continues to rise

Wheat prices continue to rise in both Paris and Chicago. In the past week, the wheat price in Paris rose by €3.25 to €283 per tonne delivered in December. At the beginning of this week, this price increase will have a stronger follow-up. On Monday morning, the quote climbed nearly €6 to €289 per tonne.

Wheat exporting countries driving price rise

The price increase in wheat is explained by continued demand from important importing countries. Egypt is looking to expand the number of countries that can supply wheat. According to reports, Latvia may be on that list. This is all the more striking now that Latvia is one of the countries that imports more wheat from Russia than last year. Egypt has so far bought 1.9 million tons of wheat – 46% less in Russia.

No change in Russia’s wheat export tax

In connection with corona measures, Russia has decided to keep its export tax the same for the coming week. An increase in the levy has already been announced for the week starting November 10. In that week, the wheat export tax rises nearly $3 to $69.9 per tonne based on an indicative price of $299.90 per tonne of wheat. This is converted to € 257.50 per tonne.

Photo: Canva
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