CBOT wheat and corn prices increased last week

30.05.2018

WHEAT. During May 17-24, CBOT wheat futures gained 6.6%. The US wheat export spot prices (SRW) for June delivery soared by USD 12/MT, while French wheat supply prices gained USD 3/MT, reports UkrAgroConsult.

Market operators were concerned about the US winter wheat conditions, because of the drought in southern part of the Great Plains. Meteorologists forecasted dry and hot weather conditions for the previous week-end; precipitation was expected only in regions of the Midwest.

In addition, crop prospects in other key exporting countries also worried market participants. The temperature regime in the Black Sea countries increased against the backdrop of precipitation deficit. Australian farmers seeded wheat in dry soil over the third consecutive week. Rains were seen in Western Australia, but their amount was insufficient to replenish moisture reserves. Southern and eastern regions remained dry.

French wheat prices followed CBOT trends and fluctuated under the influence of EUR/USD exchange rate.

CORN. Over the period under review (May 17-24), CBOT corn prices increased 2.3%. The US corn export prices strengthened by USD 2/MT (June delivery), while Argentinean corn supply quotations remained at the previous week’s level.

Rains in the northern part of the Midwest of the USA, which can slow down corn sowing, raised concerns of market operators. The growth was also triggered by information on lowering of corn production estimates in Brazil by a number of local analytical agencies, because of drought in southern states. Moreover, the growth was supported by good data on the US corn sales over the week (854 KMT during May 10-17).

Last week Argentinean corn prices remained unchanged due to holidays and rumors about possible restoration of corn export duties, given the economic crisis in the country.

Check up prices and enjoy free online charts on UkrAgroConsult’s website. Daily updated commodity exchange prices (CBOT, ASX, BCE, MATIF, WCE, LIFFE) and cash market quotations for wheat, corn, barley, soybean, sunflower and other agricultural commodities in Ukraine, Black Sea region and world are available in section "Prices and Futures".

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