The grain market is restless. Wheat prices have started to fall after a brief rebound. This is partly due to the report that Russia has no plans for the time being to limit the export of grain.
The wheat price started to decline halfway through week 36. This is influenced by the weather forecasts, in which rain is expected in the dry Russian winter wheat areas. Continued weak demand for US wheat is also expected.
Lower yields
In addition, there was news of rain in the American winter wheat areas, which is favorable ahead of the sowing season. The wheat quotation on the Matif in Paris is now testing the bottom of €200 per tonne. However, the lower yields remain a supporting factor. The International Grains Council (IGC) forecast for the global wheat harvest has been revised downwards again. This means that the expectation is 716 million tons, compared to 758 million tons last year.
The corn price has recovered slightly at the beginning of this week, following reports and forecasts of heavy rain showers as the remnant of Tropical Storm Gordon. That storm could damage the corn crop in the United States. Also the message that Argentina export taxes sets supported the price. However, on Wednesday September 5, the price fell slightly again, because there are more favorable weather forecasts for the important corn production regions.
Endangered soy crop
The soybean market is moving sideways and is trading near $300 per ton today on the CBoT in Chicago. A small revival early this week was caused by the harvest (in Wisconsin in particular) being threatened by heavy rain and local flooding. However, on Wednesday September 5, the listing closed lower, partly due to the expectation that trade tensions between the United States and China will escalate this week.