The French Matif wheat price for December dropped to €228.75/t on Monday of this week. That’s the lowest price since 1 June when it hit €226.75/t.
However, on Tuesday it had come back up somewhat to €236.25/t, still down on Friday’s close of €243.25/t.
On Wednesday, those prices were looking more positive and December wheat was showing a slight increase.
The Agriculture and Horticulture Development Board in the UK reported this week that strong Russian exports weighed on prices, while also reporting that the Russian wheat crop would be the second largest on record.
A report from Agritel also stated that Ukrainian exports are putting pressure on European and US wheat futures markets.
In the US, last week’s Pro Farmer crop tour estimated yields of maize 2% below the US Department of Agriculture’s estimates and it seemed to help the market last week.
Hot and dry weather in the US will continue to be watched for its impact on yields.
One thing we are always watching is the maize price. If maize is plentiful and prices drop, then it creates competition for feed wheat and barley as buyers may opt to purchase maize instead of these grains.
This week, Reuters reported that Brazil is to “overtake the US this year as the world’s top corn exporter” due to a bumper harvest and logistical breakthroughs.
Brazil has three maize crops a year in some parts of the country.
Coupled with under-used farmland, this could see yields go higher.
Reuters reported that improvements to its northern port routes are helping to move larger volumes of maize.
French oilseed rape took a big drop on Tuesday 29 August, going from €474.25/t on Monday to €464.75/t on Tuesday.
Soya bean crops in the US need rain and hot weather in the US is helping to bring soya bean prices up.
This also likely fed into oilseed prices last week. However, the EU’s oilseed supply looks good, so this is likely to stop the EU price rising too high.
Last week, the European Commission estimated rapeseed production at 19.1 million tonnes, up 10.2% on the five-year average, but down on last year’s yield.
Rapeseed production in Canada is estimated down by 1.13 million tonnes this season to 17.56 million tonnes.
European malting barley prices continue to trade over €100/t above feed barley, with the FOB Creil spring malting barley price in France at €309/t this week.