Markets climbed over the last week before they fell rapidly on Wednesday. There is huge uncertainty in markets.
Traders are no doubt looking at what is happening in the Middle East and how this affects logistics, currency, fertiliser and oil prices.
Since last week, wheat prices had climbed. French wheat for December was at €217.50/t on Wednesday 24 March.
It was at €222.50/t on Tuesday evening this week. However, on Wednesday afternoon 1 April, it was back down to €218.25/t.
The announcement by US president Donald Trump that the war would conclude in a number of weeks may have affected this.
Corn and oilseed rape were on similar trends. They climbed and dropped on Wednesday afternoon.
US wheat prices were on a similar trend, corn was up and down and soybeans were relatively stable. UK wheat is fairly stable.
The euro was trading at 1.15 to the dollar this week, which was helping European markets.
Agritel reported this week that “fundamentals are slowly trying to take back control of the markets”.
It said: “Prices are no longer reacting with the same intensity to announcements and are now trying to step back.”
Oilseed rape
It was rapeseed that was the big news this week though. No doubt oil prices played a role in this, but policy changes in Indonesia and Argentina were also affecting the markets.
These policy changes look focused on using more local renewable sources and reducing dependency on fossil fuels in the current energy crisis. Indonesia will speed up the move to a 50% biodiesel blend from 1 July.
On Tuesday of last week, French rapeseed for November was at €490.50/t.
On Tuesday evening 31 March, it had climbed to €509.50/t, an increase of €19/t in a week. However, on Wednesday afternoon, that price had dropped by €5/t to €504.50/t. This shows the volatility in the market and the need to take opportunities to sell when they come.
There is a significant amount of oilseed rape across the country which is visible as it starts to flower.
While this price may rise again with oil prices, it may be sensible for growers to sell a small amount forward.
The price may very well go higher, but it might be better to take a chance on a rising market than miss if it falls.
Native prices
As animals get out to grass and feed demand slows, so too does grain demand, with little activity reported for grain in sheds.
Spot prices for dried wheat and barley remain stable at €220 to €225/t, while maize into the country has dropped slightly, but is still well above native cereals, keeping competition at bay for what’s needed at present.
SHARING OPTIONS