Wheat prices from the Chicago exchange extended losses on Thursday as very weak US export figures weighed on prices. With the US dollar significantly stronger against the domestic south American currencies such as the Brazilian real and the Argentinian peso, US grain exports have been extremely uncompetitive this year.In Europe, wheat prices were supported by the return of Egypt to the market following the dispute earlier this year over ergot levels in wheat shipments caused a 60,000t cargo of wheat to be rejected by the Egyptian grain authority GASC.
Wheat prices from the Chicago exchange extended losses on Thursday as very weak US export figures weighed on prices. With the US dollar significantly stronger against the domestic south American currencies such as the Brazilian real and the Argentinian peso, US grain exports have been extremely uncompetitive this year.
In Europe, wheat prices were supported by the return of Egypt to the market following the dispute earlier this year over ergot levels in wheat shipments caused a 60,000t cargo of wheat to be rejected by the Egyptian grain authority GASC.
This week, GASC bought a sizeable 60,000t cargo of French wheat which helped the market in Europe as Egypt is the world’s largest importer of wheat.
Europe
On the Euronext exchange (MATIF) in Paris, prices were generally steady during Thursday’s trade, with no major fluctuations.
Wheat prices from Paris were back marginally but fared much better than US wheat prices. Expectations of another bumper harvest in France, the continent’s largest producer, continue to dampen prices somewhat. May 2016 delivered wheat was down by less than €1/t to finish above €153/t, while May 2017 delivered wheat eased marginally lower to settle at €175/t.
European maize prices were mixed, with June 2016-delivered maize gaining over €1/t during Wednesday’s trade in Paris to edge above €155/t, while June 2017-delivered maize actually lost €1/t to settle at €169/t.
Rapeseed futures from Paris were also mixed but generally steady on Thursday, with May-2016 delivered rapeseed down slightly to finish below €368/t, while May 2017 rapeseed increased almost €1/t to move just below €364/t.
Chicago
In Chicago, wheat prices extended losses on the back of weak export sales while corn/maize prices have rallied somewhat after plunging this time last week.
SRW wheat for May 2016 delivery was down over $2/t during Thursday’s session in Chicago to finish at $168/t (€148/t), while May 2017-delivered SRW wheat also lost $2/t in price to settle on $188/t (€166/t).
US corn (maize) prices have continued to regain the ground lost after last week’s pummelling. On Thursday, May 2016-delivered corn gained more than $1/t to edge above $142/t (€125/t), while May 2017-delivered corn also increased $/t to finish below $154/t (€135/t).
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