Europe's new crop contracts in corn and soft wheat lose all 300 euros
Barley
Wheat
Maize (Corn)
Published Dec 1, 2022
Tridge summary
Both recession concerns (down to $78 for WTI oil) and a more expensive euro ('damaging' European export prices) on the other hand limit any scope for some upside price reaction. Thus, in European agricultural commodity markets, corn futures prices fall to €300 per tonne (March 2023). As with cotton, so too with corn the decline in consumption hit the prices of the product directly. Internationally, signs of curbing consumption in China prompted a correction in a market that had been in a fatigue state for months. The physical market is currently moving in the range of 300 to 320 euros per ton in the commercial centers of Europe, while the new crop contracts are now trading at 275 euros per ton.
Original content
Soft wheat is traded at 315 euros per ton (March 2023), while the new crop is at 294 euros per ton. In the domestic market, corn is kept at 40 cents per kilo bagged from a producer's warehouse, while barley, also bagged, is "bargained" in the region of 34 to 35 cents per kilo. Despite securing a deal on Black Sea grains, autumn sowings show that the supply of soft wheat in 2023 in Europe's wider neighborhood will be de facto reduced due to the war in Ukraine, which has sown almost 50% less land according to the latest estimates. It seems, however, that the highs are now behind us, with the correction attributed to the hit to ...
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