Grain price: Low maize yield may add to rise
Grain prices continued to rise this week. LIFFE wheat in the UK hit £194.65/t on Wednesday (August 8), while Tuesday (August 7) saw the Matif wheat price for December reach €216.50/t.
Low yields continue to drive price. The French agricultural ministry this week estimated an 11% drop in maize production from the five-year average at 12.8 million tonnes. In the US, maize crop condition has been decreasing as the season progresses.
More than 50% of the US crop is reported to be in “good” condition, while over 30% falls into the fair, poor and very poor categories. This leaves less than 20% of the crop in excellent condition.
Reports from Russia saw a 12% increase in exports last week on the previous seven days.
Monday saw LIFFE wheat (November) go back to the highs of last week. The price came to £192.70/t on Monday (August 6) and hit £194.65/t on Wednesday (August 8). On Thursday, the price took a drop to £192.40/t.
Boortmalt growers, who are meeting protein requirements, will be watching the MATIF price for December keenly and were no doubt happy to see it rise to €216.50/t on Tuesday (August 7). This price had dropped to €215.25/t on Wednesday (August 8) and – at close of day on Thursday (August 9) – it stood at €213/t.
Chicago Board of Trade (CBOT) wheat for September hovered around the 570c/bu mark. Having reached 560.50c/bu last Thursday (August 2), it climbed to 574.50c/bu on Monday (August 6), dropped back to 568.25c/bu on Tuesday (August 7) and by Wednesday it had risen to 570c/bu.
At close of business on Thursday (August 9), the price stood at 564.50c/bu.