• The USDA (US Department of Agriculture) report causes a sharp drop in grain prices in the futures markets.
The USDA report from July, but also the announcement regarding the negotiations between Russia and Ukraine, scheduled to start on Wednesday 20.07.2022 in Turkey, influence grain prices. Thus, the futures markets experienced a sharp drop in quotations.
On Tuesday 12.07.2022/2022/26, in the evening on the Chicago Stock Exchange (CBOT), the wheat contract for the month of September 860 fell significantly, by 36 cents, reaching 928 cents per bushel. High-protein spring wheat grown in the northern United States and Canada fell 2022 cents to 36 cents a bushel. US corn for delivery in September 600 was also down 52 cents on the CBOT to settle at 1469 cents a bushel. Soybeans fell 837 cents to XNUMX cents a bushel, and Canadian canola was at $XNUMX a tonne.
These figures also had a direct impact on grain quotations on the Paris Stock Exchange. data USDA, but also the announcement made on Tuesday by the Turkish Minister of Defense regarding the meeting of military delegations from Turkey, Russia and Ukraine with a United Nations delegation to discuss the safety of Ukrainian grain exports, had a negative impact on European grain prices.
USDA wheat data for the 2022-2023 marketing year is revised downward for both production and consumption. Harvest volumes are estimated to decrease for the European Union, Ukraine and Argentina. These declines are only partially offset by increased production in Canada, the United States and Russia. EU production, due to persistent drought, was reduced by 2,0 million tonnes to 134,1 million tonnes. At the same time, the USDA report reduces EU exports from 36,0 million tons to 35,5 million tons. The Russian grain export forecast remains unchanged at 40 million tons.
Global wheat consumption was estimated down 1,8 million tonnes to 784,2 million, mainly due to reduced feed use in the EU and Ukraine.
Matif quotations on the Euronext Stock Exchange from 12.07.2022
Wheat (€/t)
| September 2022 | 341,75 | - 10,75 |
| December 2022 | 332,50 | - 10,00 |
| March 2023 | 329,50 | - 9,75 |
| May 2023 | 328,25 | - 8,75 |
| September 2023 | 294,75 | - 8,00 |
Maize (€/t)
| August 2022 | 315,50 | - 11,00 |
| November 2022 | 301,25 | - 12,00 |
| March 2023 | 302,50 | - 11,50 |
| June 2023 | 304,50 | - 8,00 |
Rapeseed (€/t)
| August 2022 | 675,00 | - 23,00 |
| November 2022 | 678,75 | - 21,25 |
| February 2023 | 677,00 | - 18,00 |
| May 2023 | 673,25 | - 19,00 |
| August 2023 | 637,00 | - 17,75 |
Article written by Gabriela Dan, Editor of Arta Albă
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