Chicago wheat prices tumbled to their lowest level in a decade this week due to a strong US dollar and a world market currently saturated with wheat stocks. During Monday’s trade in Chicago, December wheat prices fell to their lowest since September 2006 thanks to an increasingly bearish-looking export market for wheat this year. Despite a relatively poor wheat harvest in Europe, a bumper wheat crop in Russia and the US mean the world export market for wheat is going to be glutted this year. The sharp drop in wheat prices has only served to drag US corn prices lower this week.
Chicago wheat prices tumbled to their lowest level in a decade this week due to a strong US dollar and a world market currently saturated with wheat stocks. During Monday’s trade in Chicago, December wheat prices fell to their lowest since September 2006 thanks to an increasingly bearish-looking export market for wheat this year.
Despite a relatively poor wheat harvest in Europe, a bumper wheat crop in Russia and the US mean the world export market for wheat is going to be glutted this year. The sharp drop in wheat prices has only served to drag US corn prices lower this week.
The decline in corn prices comes despite a report due later this week from the influential ProFarmer crop tour of the main grain-producing states of the US that is likely to show corn yields to be less than forecast earlier this month by the USDA.
Europe
On the Euronext exchange (MATIF) in Paris, grain prices followed the trend in the US with wheat, maize and oilseed prices all dragged lower to start the week.
December 2016-delivered milling wheat dropped €3/t on Monday to finish at €161/t, while December 2017 wheat fell to €174/t.
European maize (corn) prices were also in retreat at the start of this week, with November 2016 maize down €2/t to €162/t, while November 2017 maize finished at €166/t.
Oilseed rape prices have come back slightly in the last few days, with November 2016 rapeseed currently trading at €371/t, while November 2017 rapeseed finished at €360/t.
Chicago
In Chicago (CME), wheat prices plunged to their lowest level in a decade which only served to drag corn prices down also.
December 2016 wheat has sunk almost $15/t since this time last week and is currently trading at $146/t (€131/t). December 2017 wheat has also fallen sharply and is now back to $178/t (€159/t).
The market in Chicago for corn (maize) continues to deteriorate wit prices hitting fresh lows this week. December 2016 corn has dropped $8/t since this time last week to sit at $126/t (€113/t), while December 2017 corn have fallen to $143/t (€128/t).
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