Grain price: Big drop on Friday

Grain prices didn’t look like they would take any dramatic turns this week; but Friday morning saw the LIFFE wheat price for November go below £175/t (€195.62/t) for the first time since July 19. It fell to £174.60/t (€195.17/t).

Around The World

High yields are expected from the US maize crop and this is no doubt impacting on price. The majority of US maize and soybean crops are in good to excellent condition.

However, Tropical Storm Gordon is on the way and expected to hit a portion of the corn belt. This may impact on crops in the region. Meanwhile, the US spring wheat harvest is nearing a close.

In Australia, drought conditions continue to affect crops. Wheat and barley yields are expected to be down by a small percentage, while rapeseed production has been predicted to drop by 24%, according to the International Grains Council.

LIFFE

Having finished at £182.15/t (€203.61/t) last Friday (August 31), LIFFE wheat for November dropped over the course of the week.

On Monday (September 3) it hit £180.70/t (€201.99/t), before taking a tumble to £177.35/t (€198.25/t) on Wednesday evening (September 5). It picked up by Thursday (September 6) to £180.10/t (€201.32/t).

On Friday that price plummeted to £174.60/t (€195.16/t). This was the first time it dropped below £175/t (€195.62/t) since July 19.

On July 19 and 20, LIFFE wheat for November stood at £173.50/t (€193.95/t) and £175.50/t (€196.18/t) respectively. It had reached a peak of £197.75/t (€221.05/t) on August 10.

MATIF

The MATIF price for December also decreased steadily since close of business last week. The MATIF stood at €205.50/t last Friday (August 31) and dropped across the opening week of September.

On Monday (September 3), the December price finished at €203.25/t. By Thursday (September 6), it had slumped to €198.25/t, only to hit €197.50/t on Friday (September 7).

The MATIF price for December had stood at over €200/t for a full month from July 27 to August 27. It stood at €199.75/t on July 27.

CBOT

Chicago Board of Trade (CBOT) wheat for December wasn’t much better. It fell to 513.75/t (€163.37/t) on Thursday (September 6), with September wheat having reached 531.50/t (€168.77/t) on Tuesday (September 4).

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