The International Grains Council has issued its latest forecast for this year’s harvest and said that the projection for world total grains (wheat and coarse grains) production in 2016/17 now stands at 2,015mt, the second highest on record. This would represent a 1% increase on last year.

Markets, however, seem to have accepted the idea of high stocks and output and prices have maintained their recovery over the past few days.

Europe

On the Euronext exchange (MATIF) in Paris, wheat prices have been remarkably stable since the end of last week, staying above €171/t for December 2016 deliveries. December 2017 futures have lost some ground but remained near monthly highs at the close of trading on Monday above €182/t.

European maize showed a more marked positive trend, with contracts for June this year and next year both gaining 75c/t.

Rapeseed was on a similar upward trend with November 2016 and 2017 contracts up €3/on Monday, building upon earlier gains last week.

Chicago

In Chicago, both wheat and maize prices ended last week on a high, holding gains made mostly last Thursday.

Wheat futures fetched $186.7/t (€167.1/t) for December 2016 and $204.5/t (€183/t) for December 2017.

Corn (maize) futures, too, closed last week on monthly highs, with contracts for both December 2016 and 2017 now well above $162/t (€145.4/t) mark.

This is despite the continuous slide of the euro’s value against the US dollar, which makes the gains appear even stronger in euro terms. While maize futures and 2016 contracts for wheat remain cheaper in Chicago than in Paris, December 2017 wheat futures are now trading higher in the US (€183/t) than in Europe (€182/t) when compared in euro terms.