Grains - Grain Products

Cereals daily: higher yields put pressure on Western Europe's wheat price

July 21, 2020 10:01 AM, Der AUDITOR
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CHICAGO/PARIS. Market and price trends with first estimates.

Wheat: Poland and Lithuania offer lower prices
The wheat markets came under pressure because of low export demand. In the USA, the export inspection of 500,607 metric tonnes was 24% smaller than last week. In the USA, harvest for winter was 74% complete. Protein levels are expected to be average. Egypt announced a new wheat tendering procedure, with a modified payment term of six months. High crop expectations in Poland of 11.76 million metric tonnes compared to 10.73 million metric tonnes last year caused a sensation. Lithuania's wheat crop is expected to increase from 3.76 to 4.27 million metric tonnes. Heavy rainfall in May and June more than compensated for the drought in mid-March. A weaker Zloty will make Polish wheat more competitive, with offers expected to reach EUR 176 per metric tonne EXW western Poland. In France, too, wheat yields are rising north of the Loire and Seine. In this respect, the trade expects better yields in Germany as well. In France and Germany, wheat declined by EUR 2.00 to 3.00 per metric tonne.

Wheat (front month)

CBoT (USD/bu)

519.75

-2.7 %

MATIF (EUR/mt)

181.75

-1.7 %

Black Sea (USD/mt)

203.50

-0.2 %

Wheat spot market

Milling wheat (12/220/76)

Parity

EUR/mt

Diff. EUR/mt

Rouen FOB

215.22

-2.48

Hamburg DDP*

186.00

-2.00

Rhineland DDP*

186.00

-3.00

Westphalia DDP*

186.00

-3.00

Upper Rhine Region FOB*

175.00

-1.00

Feed wheat (72/73)

Netherlands CIF*

188.00

-2.00

Creil FOB*

178.00

-2.00

South Oldenburg DDP*

186.00

-3.00

Neuss DDP*

180.00

0.00

Upper Rhine Region FOB*

175.00

0.00

Trade sources
*Price valuations

Corn: Real and hryvnia plummet against the euro

Corn prices also declined. In the USA, rainfall in the corn belt provided good growth conditions. In the Crop Progress Report, 69% good to excellent plants remained unchanged from last week. However, the US export inspection was twice as high as last week at 1.15 million metric tonnes. Mexico, China and South Korea were the largest buyers. In France, the corn price slumped by EUR 3.00 per metric tonne, which was due to weaker wheat prices and better yield expectations for the coming French corn harvest as a result of the rain. The Ukrainian Hryvnia and Brazilian Real also fell sharply, which reduced import prices.

Corn (front month)

CBoT (USD/bu)

326.00

-1.9 %

MATIF (EUR/mt)

171.25

-1.9 %

Corn - physical market

Grain maize (commercial)

Parity

EUR/mt

Diff. EUR/mt

Bordeaux FOB

166.00

-3.00

South Holland CIF

195.00

0.00

South Oldenburg DDP

197.00

0.00

Brake FOT

196.00

0.00

Westphalia DDP

197.00

-1.00

Upper Rhine Region FOB

190.00

0.00

Trade sources

 

DDGS (front month)

Parity

EUR/mt

Diff. EUR/mt

Zeitz EXW

183.00

0.00

Trade sources   

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