Grain prices were in the green from early this week. The MATIF for March 2019 moved to €191.25/t on Thursday. However, as of Friday morning the December price was significantly lower at €191.25/t.
Following the cancelled Brexit vote, LIFFE wheat price (January) improved on Tuesday, reaching £173.30/t and rose all the week. The weakening value of sterling was a driver behind improved UK wheat prices this week. The continued uncertainty surrounding Brexit will no doubt continue to cause volatility in the market.
Supply and demand estimates
The United States Department of Agriculture released its World Agricultural Supply and Demand Estimates (WASDE) report this week.
Maize stocks were also increased. December-ending stocks for maize were 303.8 million tonnes – an increase of 1.3 million tonnes on November. Record maize yields have been recorded in Ukraine and consumption is down in the US.
Soybean stocks were also raised this month – by 2.9%. Brazil and Argentina’s ending stock were both increased on November.
LIFFE wheat rose from £17.70/t on Tuesday (December 11) to £173.15/t on Wednesday (December 12) and £174.65/t on Thursday (December 13).
The MATIF price for March was a similar story. It started the week at €204.00/t and by Thursday had reached €207.50/t. As of Friday morning the MATIF price for December was at €191.25/t.
Chicago Board of Trade (CBOT) wheat finished the week at 536c/bu, up on Monday’s price of 525.25c/bu. CBOT wheat did take a dip on Tuesday, most likely with the release of the WASDE report, which showed world wheat stocks were up on November.