The past week was not the best for grain holders. Prices of contracts on world exchanges fell, and wheat prices were particularly hard hit.
US wheat cheapest in 3 years
In the past week, grain contract quotations on world exchanges have proceeded under the dictates of sellers, wheat prices were particularly hard hit. After a discount of more than four percent, U.S. wheat quotes were at levels last seen three years ago, while wheat listed on Matif came dangerously close to the two-year low set in late May and early June this year.
Corn market also not good
Only seemingly better is the situation on corn listed on the Paris Exchange (chart below). If one “disregards” the price anomalies just before the June contract expires, the current price level is the lowest since the first decade of January 2021. Given the very poor last two seasons of corn harvests in the European Union (down by as much as nearly a third last season) this does not inspire optimism. In contrast, corn on the CBoT is at its lowest since December 2020.
MATIF Wheat
Wheat in the contract for September delivery on Friday on MATIF cheapened by 1.3 percent and cost 221.25 euros/ton (PLN 990/ton), and in y/y terms, the price of wheat fell by 33.4 percent. For the past week, the price of wheat has declined by 5.2 percent.
The price of corn on the Paris Exchange in the November contract on Friday rose 0.2 percent to 212.50 euros/ton (PLN 951/ton), and for the past year it fell 33.6 percent. For the week, quotations fell 1.0 percent.
Wheat on the CBoT in the September contract on Friday cheapened by 1.0 percent and cost $208.52/ton. On a y/y basis, quotations fell 26.8 percent. For the past week, the price has declined 4.3 percent. The price of corn in the contract for September delivery on the Chicago exchange rose 0.8 percent to $182.97/ton, down 29.4 percent for the past year. For the past week, quotations fell 1.3 percent.
Source: Farmer.pl