A strong demand supports wheat and corn prices on the world market. The futures markets show that expectations for the price of wheat in particular are tense, partly due to recent and coming cold conditions in production areas. The high corn and soybean prices in recent months are affecting the plans of American farmers.
The latest figures on their acreage show that they are expanding them considerably to a record total of 73.7 million hectares. This is evident from figures from the United States Department of Agriculture, which has presented expectations for the 2021-22 financial year. An estimate of US wheat production is 49 million tons in that financial year, and 384 million tons of corn is expected. For wheat this is in line with the forecast of market analysts, the quantity of maize was estimated to be higher.
The March 2021 contracts on the Paris futures market will soon expire. The prices are rising. Wheat has become almost 7% more expensive in a week and corn more than 4%. In Chicago, forward prices also rose for March, but less rigorously. There is a rapid demand for grains on the physical market worldwide. The price indexes of wheat, corn and barley rose last week. The fact that Argentina will compete more strongly with the US with its maize has an influence on maize prices. Argentina will not, as previously announced, increase export tariffs for corn and soy.