The dollar strengthened against a basket of currencies last week on the back of positive economic and jobs news in the US, moving the US dollar index to a seven-month high. The appreciation of the greenback is weighing on global commodity markets (all priced in dollars) and making US grain exports uncompetitive.

However, on the other side of the divide, European grain is now so competitively priced thanks to the euro weakening against the dollar that market analysts are expecting a surge in European wheat exports.

Europe

On the Euronext exchange in Paris (MATIF), grain futures were generally improved as the euro remained weak against the dollar.

Wheat futures from Paris were steady, with May 2016 delivered wheat up slightly over the course of last week to finish Friday’s trade at €188/t. Wheat for May 2017 delivery gained steadily throughout last week – up by €3/t over the week to settle at €195/t.

European maize (corn) futures were less mobile but steady nonetheless. June 2016 maize was flat over the week at just under €176/t, while June 2017 maize prices gained by €2/t to finish Friday’s session in Paris at €184/t.

Rapeseed prices also gained over the course of last week. May 2016 delivered rape edged up by €4/t to finish at €377/t, while May 2017 rapeseed prices gained by more than €2/t to finish the week at €367/t.

Chicago

On the Chicago exchange (CBOT), US wheat prices were in retreat last week while maize (corn) prices held their own.

December 2015 SRW wheat lost $2/t over the course of last week to finish Friday’s trade in Chicago just below $180/t (€169/t), while December 2016 SRW wheat prices were back by a similar amount to settle at $190/t (€179/t).

US maize for December 2015 delivery inched up by $2/t to finish at $143/t (€135/t), while December 2016 maize prices gained marginally to $154/t (€145/t).