Grain Prices Fluctuate Amid El Nino Concerns and Drought

The global grain market is experiencing price peaks and fluctuations due to various factors. The Matif wheat price for December hit a monthly peak of €256.75/t on September 2, but fell to €247.25/t by Tuesday this week. Corn prices also dropped, while rapeseed was up.

However, the market rebounded on Wednesday, with Matif wheat for November climbing back up to €249.75/t. Corn and oilseed rape prices also increased. The focus in the market remains on the possibility of grain moving out of the Black Sea, the Middle East, and the impact of lower maize stocks.

El Nino's effect on grain supplies is a concern, with some experts predicting it could be one of the worst events in about 150 years. Drought in the southern hemisphere may affect corn, maize, and soybean production, already reflected in prices. French maize for November is trading around €20/t over wheat.

Irish farmers may benefit from a higher maize price, as feed producers tend to choose wheat or barley over maize. However, there are opportunities to sell grain at relatively good prices, particularly when peaks occur. For instance, the market saw a peak in July and another one at the beginning of September.