The fact that the raw materials markets are badly shaken by the Ukraine war can hardly have escaped anyone's attention. If you blink your eyes, there are, so to speak, completely different prizes on the board. Wheat and maize prices on the Matif in particular stand out today, reaching levels that were thought almost impossible a week ago.
The Russian attack on Ukraine is pushing the boundaries on the grain market. On Thursday, February 24, the wheat price closed at a record high of €316,50 per tonne for the March contract. After a small dip on Friday, it rose further yesterday to €322,50 per tonne. Today the brakes came off. This started shortly after the opening of the stock market with a sharp increase and that movement continued throughout the day. Towards the end of the afternoon even €349,75 per ton appeared on the bill. While writing this article, the price has dropped slightly to €347,25 per tonne.
The quotation on the Matif for the new harvest of wheat is also on the rise. The September contract rose from €290,25 per ton yesterday to €309 per ton shortly after the market opened this morning. That has now dropped slightly to €305 per ton while this article was being written. Selling wheat behind the combine for more than €300 is quite unique. And to think that just four months ago, breaking the €300 barrier with the final record price on November 23 of €311,50 per tonne on the Matif was still big news.
Record price for corn within reach
Grain maize is also reaching new heights on the Matif. Yesterday the futures market closed at €311 per tonne. This rose to €332 per tonne this morning. A final sprint is initiated towards the end of the trading day. At the time of writing, the rate is €338 per tonne. If this holds until the end of the trading day, the record price of €320 per tonne of August 4 last year will be shattered by a wide margin.
The potato futures market was also on the rise today, but it still stands in stark contrast to developments on the grain market. The EEX stands at €20 per 100 kilos for the April 2022 contract. That is €0,50 higher than yesterday. The contract for April 2023 has increased by €0,30 to €19,30 per 100 kilos. That certainly gives food for thought about the development of the potato market for the coming season. With the current grain prices, farmers have an alternative to the relatively expensive, labor-intensive and risky potato cultivation. New harvest (summer) wheat can now be hedged at €305 per tonne and maize at €262,25 per tonne behind the combine.