Grain price: FOB Creil takes a dramatic drop; wheat not moving anywhere fast
Markets aren’t looking like they’re going to improve or move dramatically. Wheat ending stocks are up and corn production is up according to this month’s United States Department of Agriculture (USDA) Supply and Demand Estimates.
Global ending wheat stocks are raised by 5.1 million tonnes to 275.6 million tonnes. Consumption is lowered and a large contributor to this lowered consumption in the EU is due to more competitive corn prices.
Corn production is forecast to be raised for 2018/2019 as yields for Brazil’s second crop look promising. Increased land area in Argentina means corn production is expected to be up in the country. Corn production is also raised in the EU, Mexico and Indonesia.
LIFFE wheat for May improved all week. It finished on Monday, April 8, at £163.00/t. By Thursday evening, it had reached £164.50/t and moved again as far as £166.00/t on Friday afternoon.
MATIF wheat (May) made no great moves this week. On Monday, April 8, it stood at €189.50/t. It sat at €189.25/t on Friday evening.
Chicago Board of Trade (CBOT) wheat for May finished at 465.25c/bu on Monday, April 8, before dropping as far as 458.00c/bu by Thursday evening. It started to improve on Thursday, when it finished at 460.40c/bu.
FOB Creil (two-row malting barley)
On Monday evening, April 8, the FOB Creil dropped back to €185.00/t – that’s a drop of €4.00/t from the previous Friday. During the week it improved, but did not return to that €189.00/t.
It moved to €186.00/t on Tuesday and €187.00/t on Wednesday, where it remained on Thursday.