Inside: Grains & Raw Material
Week 51: Is there a bright spot for the grain market?
There has been little movement in the global grain market for a long time. Product prices are largely stable. This is because of the large stocks and good expectations for the sown plots. There may be a ray of hope due to the situation in Brazil.
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Choose the subscription that suits youAlthough there was a small increase in the quotation on the grain futures market in the United States (US), prices remain depressed by the dominant position of Russia and Ukraine. These countries can offer cheap grain due to the large harvest size this year. This also ensures that the level of exports from the US is 10% lower.
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Question from Brazil
Demand may arise from Brazil. This is because grain harvests can be disappointing, due to unfavorable weather conditions. More demand will benefit the global grain market.
Prices hardly fluctuate
There is also virtually no movement in the wheat price on the Dutch regional stock exchanges. Futures market quotes for March rose slightly: €0,25 per tonne. The March contract is trading at €19 per tonne on Tuesday, December 160,50, while the May contract remained stable at €164,25 per tonne.
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The regional stock exchanges show little movement.
Between December 6 and 12, 385.635 tons of grain were exported from Europe, more than the 206.723 tons imported. Yet exports from Europe (4,7 million tons) were almost half less than in the same period last year. Then exports amounted to 10,8 million tons.
Expectations for 2018
While the 2017 harvests have just been completed, the first forecast for 2018 has already been made. Although it is still unknown what the 2018 growing season will bring, a slightly larger grain harvest (+2%) is expected compared to last year (304,9 million tons). The French analyst firm Stratégie Grains expects this.