Grain markets in both Europe and the US started 2016 on a downward trend as the pressure on commodities continues. Cereal futures in the US fell by as much as 4% last week, although the market appears to have stabilised somewhat.

Grain futures in Europe also fell significantly early last week but made a stronger recovery by the end of last week than was the case in the US.

Europe

On the Euronext exchange in Paris (MATIF), wheat futures rallied somewhat at the end of the week although, overall, they finished lower. Wheat for May 2016 delivery finished Friday’s trade up €2/t from the previous day at €177/t, while May 2017 delivered wheat improved by more than €1/t to settle at €188/t.

It was a similar story for maize (corn) futures last week, with prices rallying at the end of the week although still down on the previous week. June 2016 maize increased by €2/t during Friday’s trade in Paris to settle at €168/t, while June 2017 maize futures were flat at €175/t.

Rapeseed futures were on a negative trend throughout all of last week. May 2016 delivered rapeseed fell by almost €2/t to finish at €368/t, while May 2017 rapeseed lost €1/t to finish at €361/t.

Chicago

On the Chicago exchange (CBOT), cereal futures prices have endured a difficult start to 2016, although there were some positive signs at the end of last week.

SRW wheat for May 2016 delivery finished Friday’s trade on a strong note – improving by almost $4/t to settle at $178/t (€163/t). May 2017 SRW wheat also made gains, finishing the week’s final trade at $193/t (€177/t) – an improvement of almost $1/t from the previous day’s trade.

US maize (corn) prices have also started the new year under pressure, but last week trading was steadier. May 2016 delivered maize was flat all week before improving by almost $2/t on Friday to settle at $143/t (€131/t), while maize for May 2017 delivery also improved by $2/t to finish at $157/t (€144/t).