Inside: Grains & Raw Material
European market for grain maize falters
The price development of grain maize on the Paris stock exchange is not looking good. On Monday, October 16, the November 2017 contract fell below €150. What consequences does that have?
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Choose the subscription that suits youThe price fell to a new low on Monday, October 16: €146,75. A day later, the price rose by €2, but on Wednesday, October 18, €1 was lost again. The last time corn was below $150 was early August.
High production
The harvest in France is going reasonably well. Global yields are good, with production estimated to exceed 13 million tons. The European corn market is thin and competition from Black Sea raw materials is felt.
Export disappoints
The lower corn prices in the United States are partly caused by disappointing export figures. The harvest is about 30% complete; that is less than the 5-year average of 47%. The weather conditions are favorable for harvesting work.
Corn did receive some support from ethanol on Wednesday, October 18. China is showing more interest in ethanol, now that politicians have expressed their desire to reduce greenhouse gas emissions.
The last time corn closed below $150 was week 32.