Grain price: Keeping an eye on global weather
Grain markets remained unenthusiastic this week and future prices for November and December are not exciting anyone.
Weather across the globe, as always, will play a big part in prices and this week the Agriculture and Horticulture Development Board (AHDB) published a very useful round-up of some of the main growing regions.
Weather remains unfavourable for planting corn and soybeans in the US. This late planting may result in an increased area of land being sown to soybeans instead of corn.
At present, conditions in Russia and Ukraine are favourable for good yields. Ukraine has received 95% of the normal rainfall.
In the southern hemisphere, planting has started in Australia. Conditions are dry at present, which may delay sowing or cause farmers to sow into dry soil conditions.
A hot and dry June is also predicted on the continent which is causing forecasters to decrease their yield predictions.
LIFFE wheat for May hit a low of £154.00/t on Monday, May 13, but recovered as the week moved on.
It made it to £157.25/t on Wednesday, but declined again on Thursday to £153.50/t, where it finished on Friday afternoon. This means the price has now been under £160.00/t for two weeks.
November prices reached £146.50/t on Thursday evening.
MATIF wheat for September showed improvements all week. It closed on Monday at €168.75/t and by Thursday evening reached €173.75/t. On Friday it creeped up to €174.25/t.
The December price was higher. It closed on Thursday evening at €177.50/t.
Chicago Board of Trade (CBOT) wheat remains low. However, the July price did take a nice jump on Thursday from 448.75c/bu on Wednesday to 467.00c/bu the following evening.
On Friday afternoon the CBOT price for July was at 471.6c/bu.
FOB Creil (two-row malting barley)
It wasn’t a good week for Free-On-Board (FOB) Creil. The July price remained at €187.00/t on Monday and Tuesday, May 13 and 14, before dropping to €185.00/t on Wednesday.
The good news is that an increase came on Thursday, if only slight. The price finished at €186.00/t and remained there on Friday evening.