Futures prices strengthened further over the past week, but volumes traded were low due to the holiday period.

Lack of activity may well have been a significant reason for the strengthening prices, which now see US December wheat back on par with last June’s price levels. EU MATIF wheat is also stronger, but with more modest increases.

MATIF wheat also shows higher price levels for December 2021 than December 2020, while December 2022 (€194.50/t) is currently higher than 2021.

While lack of activity is part of the reason given for the increased futures prices, wheat markets are also supported by the phase one trade deal in US-China talks.

Maize

Maize price improvement has been more modest, but it has continued to show steady increase.

As was predicted, the new government in Argentina has again put an export tax on maize and this will likely decrease its export competitiveness. It may also drive change in the make-up of different crops areas there.

Native prices remain difficult to pin down, as nervousness continues in the trade. Suggested trade prices put spot wheat in the €191 to €194/t bracket, but some sellers report up on €200/t from users. May wheat is even more difficult, but it is probably in the €195 to €198/t range. Spot barley is around €175/t to the trade. New-crop prices remain around €185 to €187/t for wheat and €175/t for barley.