Compared to yesterday, today (Thurs, March 3) was a relatively quiet trading day on the Matif. Wheat and maize quotes are still on the rise, but have remained fairly stable for much of the day. There seems to be only a final sprint.
The March wheat contract opened at €366 per ton, €5 above yesterday's closing price and briefly rose to €376 per ton. Shortly afterwards the price dropped to a level of around €360 per tonne. Towards the end of the day the price is on the rise again. At the time of writing this article, the rate is €373,50 per tonne. The May contract - by far the most traded contract - rose from a closing price of €340,75 per tonne to €368 per tonne at the highest point of the day. At the time of writing, the price is €358,25 per tonne, more than 5% higher than yesterday. The September contract adds 2,5%, bringing it to €304,75 per tonne.
Corn was higher than wheat for much of the day. This happens more often, but since the price fluctuations on the wheat market have been much greater in recent days, it is remarkable. Yesterday, the March corn contract closed at €355 per tonne. For much of the trading day, this remained stable at €375 per tonne. And also at the time of writing that is €375 per tonne, an increase of 5,6%. The availability of corn for the rest of the season is particularly worrying for traders. The first contracts for the new harvest of November 2022 and March 2023 are at €264,25 and €263 per tonne respectively. That is 2% higher than yesterday's closing price.
perfect storm
Several experts warn that a 'perfect storm' is in the making for commodity markets. Russia's military actions have disrupted supply chains, upending markets. And this in a market that had already been disrupted by a rapid economic recovery after the corona crisis. However, the extreme price increases and challenges in the availability of raw materials could seriously damage economic growth, according to analysts. Partly directly due to a drop in demand for raw materials. Whether it is wheat, oil or iron ore, companies must be able to get it delivered and be willing and able to pay the current prices. For the slightly longer term, current raw material and especially energy prices are further driving up the already high inflation figures.