Grain Prices Plummet Amid Oil Price Drop and Export Concerns
Grain markets have been on a downward trajectory over the past week, with significant falls observed on Wednesday. The Matif wheat price for December dropped to €226.50/t, down from €232.25/t the previous week and €245/t at its peak last month. Corn prices for November were also trending downwards, mirroring UK and US prices.
US corn crops are showing some positivity, with 61% rated good or excellent this week, although this is a 2% decrease from the previous week. Rainfall has been helping crops, but concern around grain exports from the Black Sea region remains, with strikes in Ukraine and Russia continuing to affect markets.
The sharp decline in oil prices, driven by prospects of an agreement between the US and Iran, added to bearish factors weighing on the US grain market, according to Argus Media. EU grain production forecasts show soft wheat production down 8% from last season, while maize production is estimated at 51.9m tonnes, increasing the EU's import requirement by 5m tonnes.