Grain Prices Plummet as Black Sea Disruptions Bite
Grain prices reached a peak last Wednesday, July 22nd, before dropping in subsequent days. The French wheat price for December closed at €247/t on July 22nd, an increase of €13.25/t from the previous week.
The price held steady at €245/t on Thursday but quickly fell to €236.25/t by Friday. By Wednesday afternoon this week, it had dropped further to €233.50/t.
UK and US markets also peaked around this time. Various factors contributed to the volatility, including concerns over supply from the Black Sea region, conflict in the Middle East, and drought across Europe affecting yields.
The Agriculture and Horticulture Development Board (AHDB) stated that 'The main market driver is continued disruption in the Black Sea, as further attacks on ports and commercial vessels deter shipping calls and push war-risk insurance and freight costs higher.'