CBOT wheat and corn prices kept falling last week

26.06.2018

WHEAT. During June 14-21 CBOT wheat prices kept falling (-1.24%). The US wheat (SRW) spot export prices for July delivery fell by USD 2/MT, while French wheat cheapened by USD 5/MT, reports UkrAgroConsult.

Price futures were pressured by a number of factors:

- high winter wheat harvesting pace in the USA;

- considerable improvement of spring wheat conditions over the week;

- low contracting and actual shipments of the US wheat at the beginning of the new export season.

Favorable precipitation persisted in Australian producing regions, sowing in Argentina was carried out under dry weather conditions. Canada completed wheat sowing - temperature regime was within the norm, but the amount of precipitation that passed the day before was lower than expected.

Productive rains were seen in the eastern part of the EU (Poland, Romania, and Bulgaria). French wheat prices followed the CBOT trend. In addition, market experts continued to reduce Russian wheat production forecasts, which supported CBOT prices at the end of the reporting period, along with the US dollar weakening over the week.

CORN. Over the period under review (June 14-21), CBOT corn prices lost 1.65%, reports UkrAgroConsult. Last week the US corn export prices fell by USD 2/MT (July delivery), Argentinean corn supply prices decreased by USD 2/MT, while Brazilian corn futures remained at the previous week’ level.

The main bearish drivers:

- rains in the Corn Belt of the USA;

- improvement of US corn conditions over the week;

- the lowest volume of weekly corn contracting in the USA since the beginning of the season;

- tensions in trade relations between the USA and China, as well as with NAFTA and the EU countries.

Precipitation deficit in the Black Sea countries and Brazil limited the reduction of prices last week.

 grain prices

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".

 

UkrAgroConsult

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