The wet weather this autumn also affects the sowing of cereals. However, this is not noticeable in the futures market. What is more concerned with the market is increased wheat stocks in the US. Currency movements also affect grain prices.
In addition to a delayed harvest of potatoes and onions, the sowing of winter barley and wheat is also on hold due to the wet weather in Europe. It is not yet extremely late, but there is no early and smooth sowing. However, this has no effect on wheat quotations.
Flooding causes revival
New figures about the wheat harvest in the United States (US) are dampening the market. Rain also plays a role in wheat development in Argentina and Australia. This has resulted in a slight increase in prices. There are stories, especially from South America, that rain causes flooding. This brief revival on the futures market is now over.
Small harvest in America
The grain harvest has not yet been completed in Canada. The rain makes harvesting spring wheat difficult. This year the quality is mediocre, due to a low protein content. The US has harvested the smallest grain harvest in 127 years, according to figures from the USDA. In total this concerns 15,2 million hectares, a reduction of 14% compared to last year. The yield, at 47,4 million tons, is 15% below the 5-year average. In 1988 the total volume of grain was still 74 million tons.
The futures market hardly moves
Price movements on the world market are partly due to currency movements. The CBoT moved modestly last week, with a bottom of $44075 and a top of $448 per 5.000 bushel. Converted to 136 tons. There was a difference of only $1,36 between the start and end of the week.
In Paris, on the Matif, the movement was even smaller. High was at €167 and low at €165,25 per tonne. There is no tension on the market.
No impulses on the physical market
Prices are also showing little movement on the physical grain market. Feed wheat in Goes for week 40 was unchanged at €147 per tonne. In Groningen and Emmeloord, half a euro per tonne was added. The stock exchange quotations amounted to €162 and €159,50 per tonne. Middenmeer adds €1 and amounts to €160 per tonne.