There were no new price announcements for harvest this week, although this should not stop farmers from receiving the majority of the payment due. Most grain buyers are paying out on account.On the world grain markets, things remained similar to recent weeks. However, prices seem to have found a new level.
There were no new price announcements for harvest this week, although this should not stop farmers from receiving the majority of the payment due. Most grain buyers are paying out on account.
On the world grain markets, things remained similar to recent weeks. However, prices seem to have found a new level.
On Friday, the French Matif wheat price for December closed at €229/t, almost unchanged from the week before at €228.75/t. However, on Tuesday evening of this week that price had dropped to €226.25/t.
US, UK and French wheat markets were all down on Tuesday, while maize and oilseed markets were all down as well.
While maize prices were dropping this week, there were reports of poor corn crops. At last week’s Barnett Hall conference, maize was reported not to look well in Ukraine.
It was reported that there was record dryness and heat during pollination in July and this affected corn crops in Ukraine, Romania, Bulgaria, Moldova, Serbia and Hungary.
Harvest is reported to be ongoing in Poland and yields look to be okay at the moment.
We have some market analysis from US economist Dan Basse this week (pages 40-41), who is predicting flat grain markets in the coming months.
The United States Department of Agriculture (USDA) released its World Agricultural Supply and Demand Estimates report last Friday. The global wheat outlook in that report was for reduced wheat supplies, consumption and trade in 2024/2025.
Global coarse grain production in the report was forecast down 2.3m tonnes from last month to 1.5 billion tonnes. However, maize supplies are still forecast strong, with record yields in some US states.
The maize harvest in France is reported to be delayed due to bad weather, which may also have a knock-on effect on winter cereal planting.
Wet weather is delaying winter cereal planting in France aside from the delayed harvest.
Oilseed rape
Oilseed rape prices increased last week, with the November price moving to €499.25/t on Friday. However, that price moved back down to €491.25/t on Tuesday evening.
The increasing oil prices were likely impacting on this. There were also weather concerns for some crops.
Palm oil futures increased last week as well. In the USDA report, US and foreign oilseed production was forecast down from last month’s report.
UK yields
The UK Agriculture and Horticulture Development Board has estimated wheat production down by 2.9m tonnes from 2023. Barley is up 300,000t. Oats are up 169,000t and oilseed rape is down 837,000t.
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