Virtually all major internationally traded commodities were on the rise on Thursday, February 24 due to the war in Ukraine. This has a direct and indirect impact on the agricultural sector, just think of wheat and gas prices. What are the commodity markets doing the day after the exceptionally volatile trading day?
The wheat quotation on the Matif has fallen compared to the closing price on Thursday 24 February. At the time of writing, the contract for March stands at €311,75 per tonne. On Thursday, the quote closed at €316,50, which represents a decline of 1,5%. Still, the quote is still well above the psychological barrier of $300 per ton and well above the $287 per ton that was on the board on Wednesday. For the first contract of the new harvest (September), the price has fallen a little more. It stands at €284 per tonne, compared to €292,75 per tonne yesterday. That's a loss of 3%.
Rapeseed is also slightly down on the Matif: -1% for the April 2022 contract and that decrease increases to 4% for the April 2023 contract. Corn, on the other hand, has increased. The March contract stands at €294 per tonne, an increase of 4,5% compared to Thursday 24 February. June and August have remained virtually the same and stand at €275,50 per tonne. The new harvest has fallen in price, by more than 1% and 2% for November and March 2023.
CBoT drops
The CBoT reacted less violently to the war in Ukraine on Thursday, compared to the Matif. Wheat contracts for this calendar year are down about 4% this morning. For maize it is behind 2%. This means that the pluses for wheat and maize have already largely been surrendered.
The decline in the potato futures market is continuing. At the time of writing this article, the EEX stands at €18,30 per 100 kilos. That is a loss of €1,60 per 100 kilos, or 8% compared to the closing price on Thursday. Back then, potatoes, unlike grain, were already at a loss. The June contract has remained the same at €21 per 100 kilos.
What are the energy prices doing?
Brent oil has fallen again after a trading day that saw the price well above $100 a barrel. On Thursday, February 24, Brent oil closed at $99,08 a barrel. That fell marginally to $98,87 a barrel this morning. Natural gas also still remains reasonably priced, but the current price - at €108 per MWh - is a clear step lower than yesterday's closing price: €134,32 per MWh.
The stock markets show a slight recovery compared to yesterday. The Nikkei closed nearly 2% higher at 26.476,50 points. The Nasdaq even closed 3,3% higher. The AEX Index is calmer in the first half of the trading day. The Dutch stock market is plus 0,9% and stands at 714,83 points.