After making a positive start to last week, grain markets plunged to their worst lows this year on Thursday after data released by the USDA showed US grain farmers intend to plant almost 94m acres with corn (maize) this year – the third highest planted area since World War II.
Corn prices in the US plummeted on the back of the news, dragging European maize prices down with them. Despite a slight lift at the close of the week, grain futures remain very weak which will only serve to drag down physical prices.
Europe
On the Euronext exchange (MATIF) in Paris, grain prices did improve slightly on Friday but ended the week at a loss overall.
Wheat futures showed slight improvement, with May 2016 delivered wheat gaining €1/t to finish below €154/t, while May 2017 delivered wheat increased by more than €2/t to settle below €177/t.
European maize prices remained weak having been dragged lower on the back of the news coming from the US. June 2016 maize was flat during Friday’s trade in Paris to finish below €152/t, while June 2017 maize regained some of Thursday’s losses to settle below the €173/t mark.
Rapeseed futures from Paris ended the week on a positive note as May 2016 delivered rapeseed increased almost €2/t to finish on €368/t, while May 2017 rapeseed also lifted €2/t to finish at €364/t.
Chicago
In Chicago, cereal prices showed a slight improvement on Friday but finished the week much lower than where they started it.
SRW wheat for May 2016 delivery gained $1/t to finish at $175/t (€154/t), while May 2017 delivered SRW wheat also increased by $1/t to settle at $194/t (€171/t).
US corn (maize) prices showed some marginal improvement on Friday but after Thursday’s heavy losses they remain very weak. May 2016 delivered maize gained $1/t to finish at $139/t (€123/t), while maize for May 2017 delivery inched slightly higher to finish below $152/t (€134/t).