Even with the 2016 corn (maize) harvest still ongoing in the US, early noises are beginning to emerge around a likely fall in US corn sowings for next year. CF Industries, the nitrogen fertiliser group, has said that 2017 corn sowings in the US could post their sharpest year-on-year drop in almost a decade.

Last year, US farmers planted more than 94m acres in corn, the highest area planted in corn since 2013 and the third-highest acreage since World War II. The US corn harvest is expected in at a massive 383m tonnes this season.

However, many farms in parts of the US corn belt will struggle for profitability this year as a result of the weak price of corn and will switch away from the crop next season. CF Industries is forecasting next season’s crop sowings to plunge some 6.5m acres to 88m acres for 2017.

With most grain prices from co-ops and merchants in Ireland set at this stage, we will be reporting May 2017 figures over the next number of months.

Europe

In Europe, prices from the Euronext exchange (MATIF) in Paris have generally declined in the last week, as pressure from the ongoing maize harvest here and in the US weighs on prices. Wheat prices have also suffered after Egyptian authorities made the surprise decision to raise interest rates and allow its domestic currency (Egyptian pound) to float freely.

The anticipated effect is a weakening of the Egyptian currency, which will reduce the country’s buying power in global markets. As Egypt is the world’s largest buyer of wheat every year, the news had a negative effect on wheat prices, with May 2017 delivered milling wheat losing €3/t. It is currently trading at €172/t.

June 2017 delivered maize has weakened almost €4/t in price since the start of the week to €170/t, while oilseed rape prices have been lifting slightly in the last number of days to €394/t.

Chicago

In Chicago (CME), pressure from the annual corn harvest continues, but prices have generally held their own throughout the week. May 2017 delivered wheat is currently trading below $164/t (€147/t), while May 2017 corn is trading slightly above $143/t (€129/t).