Over the last number of weeks, the Chicago grain market has largely been dictated by the shifting weather patterns in North and South America. After a complete absence, significant volatility has resurfaced in the market with daily weather reports from key growing regions affecting market sentiments almost daily. The European grain market has also fed off this volatility.

In Argentina, heavy rains and flooding have raised serious concerns over the health of the country’s soybean crop. This has served to send oilseed crop prices much higher in the last month, which has in turn lent support to cereal prices. Drought indicators across the US wheat belt are also lending support to prices.

Europe

On the Euronext exchange (MATIF) in Paris, prices opened this week’s trade generally steady.

Wheat prices from Paris were mixed during Monday’s trade, with May 2016-delivered wheat falling slightly to finish at €151/t, while May 2017-delivered wheat gained €1/t to settle at €176/t.

European maize prices were static on Monday, with June 2016-delivered maize steady at €163/t, while June 2017-delivered maize was unmoved from just under €172/t.

The Euronext exchange in Paris has finished offering May contracts for rapeseed this week, so from next week we will report November prices offered by the exchange.

Chicago

After making strong gains over the course of last week, cereal prices from Chicago got off to a steady start for this week’s trade. A weakened US dollar is also helping market prices.

Chicago wheat prices were generally flat on Monday, with May 2016-delivered SRW wheat holding steady at just over $175/t (€151/t), while May 2017-delivered SRW wheat continues to hold at the $200/t (€172/t) mark.

Corn futures from Chicago were also flat on Monday, with May 2016-delivered corn static just below $154/t (€133/t), while May 2017-delivered corn gained $1/t to finish at $161/t (€139/t).