Wheat price under pressure

Leaving spring does not harm European grain

17 April 2018 - Anne Jan Doorn - 1 reaction

In key cereal growing areas of Europe, adverse weather conditions have delayed sowing. However, no major impact on revenues is expected. The European Commission (EC) reports this in the latest MARS bulletin.

Although there has been a lot of rain in large parts of Europe and the winter was cold, this did not lead to serious problems led for grain cultivation. Excessive rain slowed summer grain sowing in much of France, Italy, the United Kingdom, Hungary, Romania, Bulgaria and the Balkans. 

In other parts of Europe, delays have been caused by a combination of prolonged periods of low temperatures. Nevertheless, the European Commission's revenue expectations are higher than last year.

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The development of winter cereals in Europe is progressing well. Wheat production is expected at 5,97 tons per hectare, 4,2% more than the 5-year average. This is partly because a high yield per hectare is expected in France with 7,38 tons.

Ukraine situation
Only in Ukraine is a clear reduction in yield expected due to the long winter. At the moment, too, the conditions are wet, which means that field operations cannot be carried out or can only be carried out poorly. As a result, harvest expectations have been revised downwards.

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Weather forecast
The weather forecast for the coming period is positive, due to warm air from North Africa. Particularly in Spain, Italy and the Balkan region, relatively much rain is still expected (more than 20 mm).

The wheat quotation on the Matif in Paris is under pressure due to the reports of a positive development. The stock exchange closed on Monday 16 April at €163,75 per tonne. Rain forecasts in the American Plains also put pressure on the global grain market.

The price of wheat on the Matif in Paris shows a downward trend.

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Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.
Comments
1 reaction
Jpkievit 17 April 2018
This is a response to this article:
[url=http://www.boerenbusiness.nl/granen-grondstof/ artikel/10878242/verlaat-voorjaar-schaadt-europees-graan-niet][/url]
Look at the fruit cultivation prices at the moment hopefully half of the grain hectares cannot be harvested then grain prices will rise
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