Soy and maize prices are on the rise, mainly as a result of extreme weather in South America. Wheat prices are also rising again after a sharp decline.
While it is hot and dry in Brazil, there is extreme precipitation in Argentina. The drought in Brazil seems to have serious consequences, because the yield forecast has been lowered from 122 million tons to 117 million tons. This while the harvest in Brazil is in full swing (about 10% has now been harvested).
Sowing is impossible
In addition, the rain showers in Argentina are so heavy that it has become impossible to sow soybeans in large parts of Santiago del Estero, Santa Fe and Chaco. About 200.000 hectares less could be sown, which means a drop in yield of about 1 million tons.
As a result, the soybean quote on the CBoT in Chicago rose by $6,25 to $333,50 per tonne. The corn price also rose significantly (+$3,50 to $149,6 per tonne) and the wheat price moved back towards $190,30 per tonne.
European crop estimates
Stratégie Grains recently published estimates for the European harvest for 2019. A European grain harvest of 2019 million tons is expected for the 2020/311 season, compared to 279 million tons this season. The harvest of common wheat is estimated at 146,4 million tons, which is significantly more than last year's 127,1 million tons.
The European maize harvest is estimated at 62,4 million tons, compared to 60 million tons last year. The sowing in the large grain-producing countries took place under dry conditions, but the precipitation of the last few weeks ensures that the winter grains are in good condition.