Last week, most grain contracts on world exchanges reached multi-year price lows. Wheat on Matif became cheaper by 3.0%.
Difficult situation on global grain markets
Another week of grain prices on world stock exchanges was marked by price declines and new lows for several years. The American and EU markets experience strong pressure from cheaper grain from Russia and Ukraine. It seems that currently only a supply shock caused by, for example, drought in at least one country that is one of the most important producers and exporters of cereals in the world can change the downward trend into an upward one. A reversal of the trend (or at least a slowdown in the declines) may also be caused by a change in the strategy of speculative funds, most of which play for further price declines (they sell futures contracts).
The price of wheat on the Paris Stock Exchange is at levels last seen in July 2021, corn on this stock exchange is the cheapest since November 2020. In turn, American corn is the cheapest since December 2020. Only wheat listed on CBOT is holding up “reasonably well” and has not yet set a new three-year low, which is USD 10/t.
Wheat in the contract for March delivery on Friday on Matif became cheaper by 1.3 and cost EUR 203.25/t (PLN 882/t), and on a y/y basis the prices fell by 32.0%. Over the last week, the price of wheat has decreased by 3.0%.
The price of corn on the Paris Stock Exchange in the March contract fell by 1.3 percent on Friday. and amounted to EUR 172.75/t (PLN 750/t), and over the last year it decreased by 41.8%. During the week, the prices fell by 3.4%.
For a week, wheat on CBOT fell by 6.1%.
Wheat on CBoT in the March contract fell by 1.1% on Friday. and cost USD 205.95/t. On a y/y basis, the prices fell by 26.7%. Over the last week, the price has decreased by 6.1%. The price of corn in the March delivery contract on the Chicago Stock Exchange fell by 0.3%. and amounted to USD 163.97/t, and over the last year it decreased by 38.40%. Over the last week, prices have fallen by 2.9%.
Matif wheat, March contract – the price fell by 1.33% on Friday. (EUR 203.25/t – PLN 882/t).
Chart 1.
Quotations of March wheat futures contracts expressed in PLN are presented in the chart below:
Chart 2
In the continuation chart below of wheat contracts listed on the Paris Stock Exchange, the long-term downtrend dominates, the medium-term trend is downward, and the short-term trend is downward.
Chart 3
CBOT wheat, March contract – the price fell by 1.15% on Friday. ($205.95/t-PLN 830/t).
Chart 4
The Chicago stock exchange is currently dominated by a long-term downward trend, a medium-term downward trend, and a short-term downward trend.
Chart 5
Matif corn, March contract – the price fell by 1.29% on Friday. (EUR 172.75/t – PLN 750/t).
Chart 6
Quotations of March corn futures contracts expressed in PLN are presented in the chart below:
Chart 7
The following is a continuation chart of corn contracts listed on the Paris Stock Exchange
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