Substantially lower prices on the grain market

06-07-2022 | |
Photo: Canva
Photo: Canva

Prices on the grain market fell sharply again last week.

The start of the new harvest in the United States and Europe is progressing quickly and that is keeping the market under pressure.

Pre-war prices

After a price drop of about 9% 2 weeks ago, the wheat price fell another 6.5% on the Matif futures market in Paris last week. Chicago itself dropped about 10% in price both weeks. In short, the price has been significantly reduced in 2 weeks. In Chicago, the September delivery quote has already fallen to pre-war levels in Ukraine. In Paris, trade is back at the price level of March 7 this year.

Russian export duties

Russia still uses the high indicative export prices for the calculation of the export duties. However, the levies that are now published in roubles have been reduced and now amount to about €78 per tonne. That is about € 62 per tonne less than last week.

Russia’s yield expectations

Yield expectations in Russia are high. This week, the new harvest in the south of Russia has left its mark on Russian wheat prices. Reports are being made that the wheat price is falling by around €25 per tonne.

John Ramaker Commodities market editor, Boerderij
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