Wheat price hike calms down, corn cheaper

27-08-2021 | |
Photo: Peter Roek
Photo: Peter Roek

Wheat prices on the Paris futures market are unstable over the longer term. The first expiring contract rises due to quality problems in France.

Wheat prices on the futures market in Paris have fluctuated considerably. The upward trend started after the first week of August. The first contract expiring in September 2021 has since risen in price by approximately € 50.00 per tonne.

The upward trend continued this week. This has to do with the problems that arise with French wheat. The French wheat harvest is now largely in. One problem is the very average quality. This is frustrating for exports in the short term. As a result, Germany will probably be able to take over more export orders. Contracts expiring later are more relevant and made less progress.

For maize, the mood is fairly calm, with a December 2021 contract price level at around € 217 per tonne.

Sharp drop in wheat price in Chicago futures market

The futures market in Chicago shows a sharp drop in the wheat price in September 2021 after the strong boom in the second week of August. This is due to developments in the maize market. Price drop also affects the wheat market.

As for soy, the harvest forecasts for maize have improved greatly. The American corn price is under pressure due to rain in the major production areas. Analysts from research firm Pro Farmer also indicate that the hectare yields of the corn will exceed the current USDA expectations.

Argentina forecasts higher maize harvest

In Argentina, the forecast for the maize harvest has been increased by more than 5%. In Brazil, the production of the currently very expensive bioethanol there will increase, despite the high maize prices. The second crop of the second Brazilian maize, the safriña, is estimated by the Brazilian agricultural agency Conab at a fraction more than 60 million tons. In May, Conab still assumed almost 80 million tons.

Jack Kwakman Freelance journalist