Grain price: Heavy supplies and improved weather sees prices fall
Wheat prices fell dramatically over the course of the week across all regions. Weather conditions are improved in the US and Europe and supplies are aplenty. With no supportive news available to the market the path of least resistance was lower.
Last week, AgriLand reported on the United States Department of Agriculture’s (USDA’s) monthly World Supply and Demand Estimates.
Global ending stocks of wheat were raised by 5.1 million tonnes, while consumption was lowered.
Boortmalt’s malting barley harvest price this year is based on the average of the Wednesday price (FOB Creil two-row planet barley) from weeks 15 to 38.
Meanwhile, as Brexit continues to be moved into the future the UK is finding markets for feed and malting barley on the continent.
The featured image above was posted to Openfield Ag’s (a national grain marketing and arable input co-op in the UK) Twitter account and shows the MV Marten loaded in Southampton this week with 3,250t of feed barley destined for Europe.
LIFFE wheat for May closed at a price of £166.15/t on Monday, April 15. It fell to £163.85/t on Tuesday and despite recovering somewhat on Wednesday (£164.50/t) it dropped back to £163.35/t on Thursday.
MATIF wheat (May) dropped by €5.50/t from Monday, April 15, to Thursday, April 18. It took the biggest hit on Tuesday when it fell to €186.25/t.
The fall continued on Wednesday and Thursday, hitting €185.00/t and €183.50/t respectfully.
Nearby Chicago Board of Trade (CBOT) wheat took a similar route. It finished on Monday at 459.50c/bu on Monday, April 15, and hit 445.00c/bu on Tuesday.
By Wednesday evening it had dropped as low as 444.20c/bu.
FOB Creil climbed from €189.00/t on Friday, April 12, to €192.00/t on Monday, April 15. It hit a high of €193.00/t on Tuesday and remained at that price on Wednesday before reaching €195.00/t on Thursday.