Grain price: This month’s USDA supply and demand estimates are out
Grain markets showed no major moves last week. LIFFE wheat for November dropped €1.35/t from the beginning to the end of the week, while MATIF wheat for December showed a rise of €1.75/t over the same period.
Supply and demand estimates
The USDA (United States Department of Agriculture) released its supply and demand estimates last week.
In its report, the USDA reduced its wheat supply estimates for 2018/2019. This was mostly based on the lower production from Australia and Russia.
The USDA estimates Russia’s wheat production to be down by 1 million tonnes to 70 million tonnes.
The USDA estimates corn stocks in the US at a record high. Reduced production is more than compensated by an increase in beginning stocks. In fact, corn supplies are at the highest the country has ever seen.
CBOT (Chicago Board of Trade) corn for December (main session corn) was trading at 373.75c/bu on Friday, October 12.
The November price opened last week, down slightly from the week previous at £179.05/t (€203.37/t). It then decreased until Thursday, when it hit £177.25/t (€201.32/t), but it rose to £177.70/t (€201.83/t) on Friday.
- Monday, October 8 – £179.05/t (€203.37/t);
- Tuesday, October 9 – £178.80/t (€203.08/t);
- Wednesday, October 10 – £176.85/t (€200.87/t);
- Thursday, October 11 – £177.25/t (€201.32/t);
- Friday, October 12 – £177.70/t (€201.83/t).
The December MATIF price worked in the opposite direction, starting the week at €203/t. It dropped slightly in the middle of the week to €202.75/t and finished off the week on a positive at €204.75/t.
- Monday, October 8 – €203/t;
- Tuesday, October 9 – €203.50/t;
- Wednesday, October 10 – €202.75/t;
- Thursday, October 11 – €203.50/t;
- Friday, October 12 – €204.75.
CBOT wheat fluctuated throughout the week, but not in any high range of prices. It started the week at 514c/bu (€162.94/t) on Monday (October 8) and it had landed on 517.25c/bu (€189.96) by Friday.
Monday, October 8 – 514c/bu (€162.94/t);
Tuesday, October 9 – 515c/bu (€163.26/t);
Wednesday, October 10 – 510.50c/bu (€161.99/t);
Thursday, October 11 – 508c/bu (€161.04/t);
Friday, October 12 – 517.25c/bu (€163.89/t).