The great interest in maize in particular is the reason that price levels on the world cereal market are very high. This also applies to the futures markets. Drought is squeezing the supply of maize.
In France, the weather has changed, in the sense that rain is falling. The drought in recent weeks has caused the crop to deteriorate. The precipitation has nevertheless put no pressure on the wheat forward price. It is even going down fast with the prices of wheat and especially maize, both on the futures markets and in day trading.
The price indices of the International Grains Council, which indicate the price level on the world market, indicate a level for wheat that is 30% higher than last year at the beginning of May and even doubled for maize. On the futures market in Chicago, the price for the July wheat contract closed on Friday 7 May at a level of approximately € 233 per tonne. That was € 50 less at the end of March. Corn makes even more progress. The July 2021 contract passed the $ 7.00 per bushel limit in Chicago. Friday, May 7, this contract will draw at a price of € 240 per tonne, which is € 60 more than at the end of March.
Corn prices are at a high level in the US because exports are going very smoothly. China has bought 1.36 million tons of the new crop. Market bureau Agritel also points to the fact that investors are very active in the grain market. This is having a stimulating effect, but also leads to a backlash in prices if profit-taking follows. Another factor for the development of future prices is that on Wednesday May 12 the US Department of Agriculture USDA will again publish its monthly report on the state of the agricultural world markets. The estimated closing stocks of maize are expected to decline, for both the current market year and the next. The main cause is the drought, which in Brazil has a disastrous effect on the coming maize harvest.