Grain market feels a little friendlier

Photo: Canva
Photo: Canva

With the nicer spring weather in recent days, the grain market also feels a bit friendlier. Both the futures market and the physical market are both recording slightly higher prices.

The wheat futures market actually rose above €200 per ton again on Tuesday. New harvest also moves along. December delivery is more than €17 above the level of the first expiring May contract.

Buyers are willing to pay a little more

Buyers are willing to pay a little more, but there is no more demand. Buyers are staying close to home with their purchases. This means that they hardly make any purchases for the longer term. It can be deduced from this that buyers are still afraid that their purchases are overpriced. That is why they prefer to wait until the moment when procrastination is no longer possible.

EU harvest yields expected to be lower

As for the new harvest, yields in the European Union are expected to be lower than last year. For example, the German cooperative association DRV is counting on 6.5% less wheat in Germany this year compared to last year. The estimate of the German harvest of grain maize is also 6.5% lower for the time being. Barley production is still quite close to last year’s level due to more spring barley.

Although harvests in the European Union may be smaller, the EU wants to restrict imports from Ukraine. For example, there will be a ceiling for the duty-free import of corn and sugar. There are currently no obstacles to the import of wheat from Ukraine. The Ukrainian grain organisation UGA expects that the country will have significantly less wheat available for export next season. This also applies to grain corn.

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John Ramaker Commodities market editor, Boerderij