MARKET ANALYSIS

WHEAT AND CORN PRICES UNDER PRESSURE

The future markets in both Paris and Chicago last week saw the price of wheat fall a few percent. Exports are more difficult for both Western Europe (France) and the United States, partly due to the influence of the exchange rate. Romania is currently more competitive than France, Russia and Ukraine and has secured a supply of 360,000 tonnes to Egypt. The state of the corn in Argentina is very poor. Only 17% is rated as good to excellent. Last year that rating was more than double. It is due to the persistent drought, which, incidentally, is also counteracting the growth of soy.

In Brazil, excessive rain remains an important factor in the prospects for corn production. This is because corn planting is planned for after the current soy harvest, which will start late. Winter wheat is doing well in France. 88% is good to excellent, compared to 64% around this time last year. The same goes for winter barley. The Netherlands Enterprise Agency reports that the winter conditions in Russia and Ukraine have caused less damage to the wheat than initially expected. According to the agricultural-economic site Agrimoney, another cold period is expected for Russia. The situation therefore remains uncertain.