Grain prices fall, despite Wasde

Analysts and farmers in France think the coming harvest will be the largest in years. The harvest there will start in mid-July, and production is expected to be around 38 million tons. That is much better than the harvest of the past 2 years.

Although in the WASDE report a lower global wheat harvest is expected, the wheat price on the CBoT in Chicago nevertheless fell the next day; this through profit taking from the funds. Wheat production in the United States (US) is also slightly higher than expected. However, the situation in the Black Sea region is, and remains, worrying.

Distressed wheat
The grain harvest has now started in the south of Russia; 2 weeks earlier than normal. This has to do with the warm spring, which also caused drought. The wheat harvest elsewhere in Europe is also not what it should be; this is how revenues fall Poland lower due to the drought. The crops were therefore already ripe and therefore had to be harvested earlier.

(Text continues below the chart)The wheat quotation on the Matif in Paris moves around €180 per tonne.

Decrease in corn quotation
Corn prices on the CBoT in Chicago fell last week. There was a small upturn in the middle of the week due to the release of the WASDE report. It stated that the use of corn will increase and that production in Brazil will be considerably lower. Corn crops in the 'Midwest' also received much-needed rain. On the Matif in Paris, the corn quotation remains the same at a price level of almost €167 per tonne.

Low soybean price
The soybean market is under pressure and therefore continues to decline sharply (even until... lowest point in 10 months). Soybean prices closed at almost $14 per ton on Thursday, June 341. This has to do with the fear that American soybeans will be hit by retaliatory measures from China. This causes American funds to sell many contracts. There are also area expansions and good production in Brazil.