Market Prices and News
Global grain markets have seen mixed action over the past week, MATIF May-23 futures closed down overall last week at €250/t. Prices for this contract rose to €260/t on Tuesday but settled back at €254/t on Wednesday evening.
Cheaper, readily available wheat from the Black Sea region continues to exert a bearish sentiment on grain markets. However, Russia has indicated that the Black Sea Corridor agreement may not be extended on May 18th if sanctions on grain and fertiliser are not removed by the West (Reuters Ag News).
Polish authorities have agreed to continue to allow Ukrainian grains to transit through Poland, this comes after the government temporarily banned grain imports from Ukraine (Reuters).
Native, spot wheat prices are trading at €265/t this week. On Monday, Tirlan offered €262/t for dried wheat and €252/t for dried feed wheat and barley in November 2023.
New crop MATIF Aug-23 rapeseed prices have increased by €9/t, closing at €474/t on Wednesday April 19th. Good crushing demand and fears over Ukrainian exports into neighbouring countries boosted prices for MATIF rapeseed contracts this week but crude oil price movements have capped further gains according to the AHDB.
Pricing on the FOB Creil average model for Boortmalt malting barley commenced last Wednesday, the first price was €265/t.
|Commodity||May 2023 Dried €/T||September 23 Green³ €/T||Nov/Dec 2023 Dried €/T|
|IRL Feed Wheat¹||265||222||262-270|
|IRL Feed Barley¹||N/A||212||252|
|Paris MATIF Wheat²||254||–||256.50|
|Paris Oilseed Rape²||469.25||–||474|
|Maize ex. Port¹||275||–||265|
² Source: Euronext correct as of 19.04.23
³ Source: Tirlan April 19th
Global Grain Supply and Demand
The USDA published the April edition of the World Agricultural Supply and Demand Estimates last Wednesday, April 13th.
Argentinian soybean crops were further reduced in the report to 27MMT down 6MMT from last month due to continued hot, dry conditions.
The Brazilian soya crop is expanding following record yields, CONAB estimates the total crop at 153.6MMT.
Winter wheat crops in the key US producing states of Kansas and Oklahoma remain in poor condition, however, the total US wheat crop area has increased by 9% for 2023 (USDA).
French wheat crop ratings continue to remain excellent, AgriMer has forecast that 94% of soft wheat is in excellent condition up to the 10th of April.