US grain markets have become more reactionary in the last week as weather concerns across the US crop belt have begun to drive sharper movements in prices. Both wheat and corn (maize) prices traded on the Chicago exchange have fluctuated up and down in the last week as extremely dry weather conditions hit spring crops across the US.

US corn prices moved above $4/bushel for the first time all year, with one grain market analyst describing the dry winds hitting the US corn belt as being akin to a “blast furnace” with top soils now extremely dry.

These weather concerns have been echoed in Europe where wheat and corn prices traded in Paris have also shown greater volatility in recent days.

Europe

On the Euronext exchange (MATIF) in Paris, grain and oilseed prices made strong gains last week but have fallen back during Monday’s trade. Milling wheat for delivery in December rose to a high of €174/t at the end of last week but fell back to €172/t on Monday.

November 2017 corn (maize) prices increased €3/t over the last week to finish above €171/t by close of business on Monday. Oilseed prices have improved but remain weak compared to last year’s peaks. November 2017 delivered rapeseed has gained €6/t since last week to move to €363/t.

Chicago

On the Chicago grain market (CME), wheat and corn (maize) made significant gains last week before recording a decline in price during yesterday’s trade. Soft wheat for delivery in December 2017 jumped by $8/t last week to a high of $178/t (€159/t). However, prices were back on Monday to finish at $173/t.

There was a similar story for corn prices in the past week, with December 2017 delivered corn shooting up to highs of $160/t on Friday. However, prices have since dropped back $4/t to $156/t following yesterday’s trade in Chicago.

In contrast, corn prices from Chicago gained slightly in the last week to move above $154/t (€137/t) by Monday’s close of trade.

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No real movement in price despite being a weather market