Grain price: Price drop towards weekend…FOB Creil included
Grain markets all took a hit this week. The FOB (Free On Board) Creil price, which Boortmalt suppliers have heard so much about in recent days, was no different. It finished the week at €185.00/t (July, 2019).
USDA supply and demand estimates
The United States Department of Agriculture (USDA) Supply and Demand Estimates were published last week (February 8) following the absence of a report in January amid the Federal Government shutdown.
The report stated that world wheat production for the 2018/2019 market year is raised by 1.3 million tonnes. This is mainly due to increases in Russia, Brazil and Paraguay.
Exports are down from Australia and Argentina by 0.5 million tonnes and 0.2 million tonnes respectively.
Global use is rising faster than supplies and as a result world ending stocks are down by 0.6 million tonnes to 267.5 million tonnes.
LIFFE wheat for March held above £170.00/t for the first half of the week. However, it took a tumble on Thursday (February 14) when it landed at £168.60/t by close of business and remained there on Friday afternoon (February 15).
The MATIF wheat price for March was similar. It opened the week at €201.75/t on Monday (February 11), dropped to €201.50/t on Wednesday (February 13).
The December price hit €196.75/t on November 11 (2018). The nearest price has not dropped below €200.00/t since December 5 (2018).
Chicago Board of Trade (CBOT) wheat was at 507.00c/bu on Friday (February 15). Earlier in the week it had increased from 518c/bu on Monday (February 11) to 522c/bu on Wednesday (February 13).
FOB Creil (Spring malting barley 2-rows)
The FOB Creil price for July 2019 was at €185.00/t on Thursday (February 14). The price has been declining since February 8 when it was at €188.00/t.