Start of the week at the grain exchange

• The Euronext European grain market started the week sharply lower, following the trend of the Chicago one.

Between two episodes of rain, the harvest progresses chaotically in France. Winter barley harvesting has resumed in late-maturing areas, while wheat harvesting is ramping up in early-maturing regions. Rapeseed harvesting is progressing gradually. Regardless of the product, the negative consequences of the excessively wet weather that has continued uninterrupted since last fall are being felt.

As experts await further information on crop results, which are progressing in France, wheat, corn and soybeans fell -3,4%, -4,2% and -2,7% respectively on new crop maturities at the Chicago Stock Exchange, and on Euronext, September 2024 wheat decreased by -3%, November 2024 corn by -1,1% and August 2024 canola by -2,9%.

Although supported by a much smaller than expected crop, the European wheat market is penalized by continued downward pressure from Russian wheat, which is currently much more competitive for export.

European maize is holding up better than other crops amid concerns about severe weather conditions for the grain in the Black Sea basin, from Bulgaria to Russia, through Romania and Ukraine.

The Chicago market suffered heavy losses yesterday as trading resumed after a slow weekend due to the Fourth of July Independence Day holiday. Traders were anticipating an improvement in crop conditions in correlation with recent rainfall in the Corn Belt.

USDA confirmed this with the following crop assessments: maize – 68% "good to excellent", up 1 point during the week; soy – 68% "good to excellent", increasing by 1 point per week; spring wheat – 75% "good to excellent", up 3 points on the week. Winter wheat harvest progress – 63%, up 9 points on the week.

Euronext quotes 08.07.2024 (GMT+1)

Wheat (€/t)

Maize (€/t)

Rapeseed (€/t)

Article written by Gabriela Dan, Editor of Arta Albă

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