Recent reports have suggested that markets, especially in Europe, are feeling the pressure of last year’s heavy yields.
The big crop in 2016 has led to high stock levels in some of the world’s largest grain-trading countries and prices have struggled to hold up as a result.
A report from the European Commission this week predicted this year’s European yield to rise sharply from last year, which will further add to an abundant global supply.
Despite pressure on physical prices, grain futures this week have managed to maintain their footing, with grain commodities in Europe unchanged and commodities in the US up $4/t on average.
Europe
Milling wheat prices from the Euronext exchange (MATIF) in Paris slipped by just €1/t and is currently trading at €165/t.
Maize prices, on the other hand, moved up €1/t for the week, with June futures settling at just over €172/t at the close of trade on Monday.
The price of oilseed rape futures recorded no change for the last seven days, with May futures resting at €397/t on Monday. Growers will hope this stability represents a bottoming-out of oilseed rape prices after European futures for the commodity recorded a net decline of €24/t since the middle of February.
Chicago
In Chicago (CME), May 2017 soft red winter (SRW) wheat futures finished yesterday at $157/t (€147/t). This marks a slight $2/t rise in the last week.
US corn prices also recorded a price rise, with May 2017 corn climbing $5/t to $145/t (€136/t).