Grain prices remain under pressure, although wheat prices in Paris have been trending upwards since Wednesday. Contracts are also trending slightly higher today, Thursday. The September contract closed yesterday at 223.50 euros/t and reached a daily high of 225.25 euros/t today. Yesterday and today, Matif maize contracts were also characterized by green signs. Nevertheless, prices are below those of the previous week. Matif wheat was still quoted at 236.75 euros/t in the front month of September last Friday.
On balance, little has changed in the market situation. The advancing wheat harvest in the USA is weighing on the market. On Monday, the USDA published a harvest progress of 40 percent after trading hours. The average of the last five years at this time is only 25 percent. For tomorrow's report on stocks and acreage, market participants are also expecting a slight increase in wheat acreage in the USA. Producers in Europe are also largely satisfied with their stocks. The first barley is already being harvested in both the south and the north. Once again, the apparently better yield expectations for Russia had a negative impact. The frost wave in May probably did not affect the stocks as much as initially expected. The European Union's export figures are lagging behind the previous year, even shortly before the end of the season. Corn imports are well behind the previous year's volume by 7.9 million tons. Ukraine remains the most important supplier, delivering more than 2/3 of the volumes. Spain remains the main buyer in Europe. In the USA, 69% of corn stocks are considered to be in good or very good condition. This is slightly less than in the previous week, but still significantly better than last year, when only 50% were rated in this category at this time. The higher expected acreage in the USA and good growing conditions in Europe are currently having a negative impact on maize. Declining ethanol production is also depressing sentiment, although contracts in Paris and Chicago are rising again today.
Prices on the local spot markets have recently been under pressure. Trading remains manageable.
ZMP Live Expert Opinion
Grain prices are looking friendlier on Wednesday and Thursday, but this does not hide the fact that significant losses were recorded in June. The coming weeks will continue to be dominated by the harvests in the northern hemisphere.
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