Grain Prices Rise Amid European Crop Losses
The grain market has finally found some support this week, but the more interesting story is not geopolitics. European crop losses and US dryness are contributing to rising prices in wheat and corn futures.
The biggest concern is Europe's maize crop, which is deteriorating sharply due to production problems in France. French production could fall to its lowest level since 1976, while EU output threatens to drop below 50 million tonnes.
This means more feedgrain will need to be imported, supporting the wider corn market and increasing competition for grain from other origins. However, logistics issues are compounding the problem, with record-low water levels on the Rhine forcing vessels to run partly loaded or avoid sections of the river altogether.