• Cereals market – the price of wheat reaches 400 euros in trading on Tuesday, April 12, 2022, at the Paris Stock Exchange.
On Tuesday, April 12, there was an increase of 20 euros in wheat prices, thus reaching 400 euros/ton. The new wheat harvest was quoted by 12 euros more, reaching 370 euros/ton. The price of corn increased by 8 euros, and that of the new harvest registered an increase of 12 euros. Rapita reaches 990 euros/tonne, after prices increased by 20 euros.
Uncertainties about new crops and high demand in international markets are bringing new records to the price of wheat on trading exchanges, both in the futures and the physical market.
Wheat on the Paris Stock Exchange
On April 12, 2022, on futures market in Paris wheat had a price increase of almost 20 euros, reaching around 400 euros/ton, and the new harvest is 370 euros/ton, 12 euros more. On the wholesale market and in the export port of Hamburg, wheat was quoted at 419 euros/ton, and in the port of Rouen at 392 euros/ton.
The increase in prices is due to the current situation, but also due to fears about future harvests. The drought facing US wheat-producing states is bringing stocks down 21 points from last year and 20 points from the five-year average.
Added to this is the difficult situation of Ukraine, where wheat production is forecast to fall to 18,2 million tons, compared to 33 million tons recorded the previous year. On international markets, demand remains high, with Egypt and Algeria buying very large quantities of European wheat.
The price of corn continues to rise
The price of corn is rising this week as well. On April 12, on the European futures market, the price of corn reached 334 euros/ton, 8 euros more, and for the new harvest an increase of 12 euros was registered, up to 317 euros/ton.
The Ukrainian Grains Association (UGA) estimates the new corn harvest at only 23,1 million tons, after figures of 2021 million tons were recorded in 37,6. The export of Ukrainian grain by rail continues, but the quantities are reduced.
On the other hand, analysts are reporting an improvement in Brazil's manufacturing outlook. Thus the Brazilian agricultural authority, Conab, increased the estimate for the 2022 harvest to 115,6 million tons, 3,3 million tons more.
The price of fodder barley in Ukraine, higher than that of bread wheat.
Barley prices rose sharply on European markets, both for the old and the new crop. On the wholesale market in Hamburg, prices reached 12 euros/ton on Tuesday, April 2022, 386, and 389 euros/ton in Rouen. These price increases are driven by the war in Ukraine and the closure of shipping in the area.
The UGA estimates the new grain harvest at 6,2 million tons in 2022, while in 2021 the figures showed 10,1 million tons. Barley exports are forecast at 2 million tonnes for the 2022-2023 trading year, much lower figures for Ukraine's barley stocks than other markets. This has led to an increase in the prices of feed barley in Ukraine, even surpassing the prices of bread wheat. At the end of the week 04.04.2022-10.04.2022, prices for barley decreased by USD 15/ton reaching USD 370-395/ton FOB (for April-May). Compared to the wheat price of 12,5%, the barley price averaged $5/ton higher. New crop barley prices range between USD 330-350/ton FOB (for July-August), USD 10/ton higher than wheat forward prices.
Article written by Gabriela Dan, Editor of Arta Albă
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