No prospects for grain price increase – traders point out the reasons

Grain prices remain under pressure despite a slight improvement in exports. High yield forecasts from Argentina and Russia prevent wheat from rising in price. In Europe, the maize harvest is coming to an end, and wheat sowing is in full swing. Rapeseed prices are mainly influenced by expectations of good yields in Canada and Australia. These are the conclusions of analyst Dr. Olaf Zinke from Agrarheute. According to him, wheat quotations on the Euronext exchange are moving within narrow limits. The most important indicative value remains 190 euros per ton for the December contract. On Monday, the price of November wheat fell by 0.50 euros to 188.75 euros/ton. Traders note some improvement in demand for European wheat due to its better competitiveness against Russian wheat. However, growing competition from Argentina worries analysts – the local harvest is expected to reach a new record of 22–23 million tons, which will increase supply on the world market in the coming weeks. ...