The rise in grain prices in the United States seems unstoppable. This week, the CBoT futures market in Chicago continued to climb above USD 630. The pacesetter of this further increase in price is a wildcat strike in Argentine ports. This leads to major concerns in global grain exports.
Something that the grain market cannot accept today, because Russia previously introduced an export tax. A quantity of 17,5 million tonnes will be subject to an export levy of €25 per tonne and a levy of 50% (not less than €100 per tonne) if this quantity is exceeded. Ukraine does not expect to have to deal with export taxes.
Within Europe it is interesting to see that the areas are changing considerably. In England, a shrinkage of more than 40% of the area is expected, caused by the wet autumn. This has made many farmers decide to switch to spring barley. In the Netherlands, the condition of the grain plots is also poor. The heavy rain has delayed sowing and the enormous amount of rain last week has caused permanent damage to many winter wheat plots.
The Paris futures market (matif) also rose further this week to above €210. The fixed market is supported by the relatively large turnover for this time of year. The dip in the euro versus the dollar now appears to be over. The euro stood at €24 on Thursday afternoon (December 1,21), something that makes exports somewhat difficult for Europe.