Grain quotations still show positives

Photo: Canva
Photo: Canva

The grain market is still a real weather market, with pessimistic reports from Russia due to frost damage and drought, alternating with positive yield expectations in the United States. These factors have been influencing prices on the international futures markets for weeks.

Wheat prices in Paris and Chicago fell last week, but this week they have risen again, with a closing price on Matif on Tuesday of €257 per tonne for the September contract. That’s about €10 more than at the end of last week. The market is barely influenced by predictions of large harvests this year made by the USDA, and others. However, the war in Ukraine does cause some nervousness about availability in the slightly longer term. The difference between grain from old and new harvest remains large.

Positive reports about US and EU harvest expectations

The high wheat prices support the corn prices. However, where possible, corn remains a good alternative to expensive wheat and barley. The price development is somewhat dampened by positive reports about sowing and harvest expectations in the US and the European Union (EU).

Not much is happening in the physical market. Stocks are still being sold, but the race is over this season. There is more focus on the new harvest, with the first barley possibly being threshed at the end of June. Some of the wheat plots are also growing well. Due to the poor conditions in the autumn, the differences between regions and plots are large. The ailing spring does not help this.

Rene Stevens Freelance journalist