Grain price: Weather woes and slow markets to the fore
While markets didn’t move in any way dramatically during the week, one way they did move was down. Wheat on the LIFFE (November), MATIF (December) and CBOT (December) markets all took a slight tumble. However, LIFFE wheat finished the week as it started by the time Friday evening came around.
AgriLand attended the R&H Hall conference this week and the outlook by some speakers on price was optimistic. Keep an eye out for full reports from the day in the coming days.
Around the world
The USDA (United States Department of Agriculture) crop progress report for the week ending October 14 showed that 39% of the US corn harvest had been completed, while 38% of soybeans had been cut.
This is ahead of the five-year average of 35% for this time of year. In addition, 68% of corn is rated good to excellent.
CBOT (Chicago Board of Trade) corn for December (main session) closed at 370.75c/bu on Thursday (October 18), while CBOT soy beans (November) closed at 863.50c/bu on the same day.
Snow, cold weather and precipitation in Canada has also played havoc with harvest progress. However, wheat is the crop under cover in Canada and the recent weather has resulted in harvest progress falling 38% behind the five-year average at the beginning of the month. Last season, Canada accounted for 60% of non-EU wheat imports, according to the AHDB.
LIFFE wheat for November opened the week at £176.50/t (€201.01/t) on Monday, down from the previous Friday’s price of £177.70/t (€202.38/t). By Wednesday, that price had dropped to £175.75/t (€200.16/t), but recovered by Friday to £176.25/t (€200.30/t).
- Monday, October 15 – £176.50/t (€201.01/t);
- Tuesday, October 16 – £176.75/t (€201.30/t);
- Wednesday, October 17 – £175.75/t (€200.16/t);
- Thursday, October 18 – £175.85/t (€200.27/t);
- Friday, October 19 – £176.25/t (€200.30/t).
MATIF wheat for December dropped by €3.25/t from Monday to Thursday. The price closed at €204.50/t on Monday. On Tuesday, it hit €203.25/t and by Thursday it had fallen to €201.25/t.
- Monday, October 15 – €204.50/t;
- Tuesday, October 16 – €203.25/t;
- Wednesday, October 17 – €202.00/t;
- Thursday, October 18 – €201.25/t;
- Friday, October 19 – €201.25/t.
CBOT wheat told a similar story. The December price opened the week at 525c/bu (€168.46/t) on Monday (October 15). Over the course of the week that price took a short slide to hit 513c/bu (€164.62/t) on Thursday (October 18) and moved to 514c/bu (€163.79/t) on Friday (October 19).
- Monday, October 15 – 525c/bu (€168.46/t);
- Tuesday, October 16 – 523c/bu (€167.82/t);
- Wednesday, October 17 – 517.50c/bu (€166.22/t);
- Thursday, October 18 – 513c/bu (€164.62/t);
- Friday, October 19 – 514c/bu (€163.79/t).