While MATIF Dec 22 wheat prices recovered earlier last week on the back of strong export demand for European wheat, native grain prices increased but will likely finish on a similar note to the previous week, according to the IFA.
The prospect of a deal being signed on 22 July, 2022 for grain export corridors in the Black Sea has re-exerted downward pressure on MATIF markets.
On Wednesday 20 July, 2022, Glanbia offered €285 for green barley and €295 for green wheat.
Paris Nov 22 rapeseed prices saw very significant price drops last week, closing at €647/t on Wednesday 20 July, 2022 and €630/t on Thursday, 21 July, 2022. This was largely due to falling Chicago soybean future prices due to beneficial July rains (AHDB).
FOB Creil malting barley settled this week at €378. The rolling average price now sits at €424/t for this Boortmalt contract.
Global grain supply and demand
The International Grains Council report for July has trimmed global grain output by a further 3MMT, mainly on the basis of the European heatwave. Total output is 1.8% lower than 21/22.
Strategie grains has estimated French soft wheat yields at 6.95t/ha – 2.5% lower than 2021. Yields appear to be less affected by drought than anticipated in key northern production regions. Harvest is progressing at an extremely rapid pace in France.
Ukrainian wheat yields are lower than expected due to hot dry weather, according to official government statistics.
Planting forecasts for Argentinian wheat continue to revised downwards due to dry weather – 6.1 million hectares are now estimated, which is down from the record 6.7 million hectares planted for the 2021/22 harvest (Reuters).