EU grain prices reflect the crisis in the global grain market
Global grain prices remain weak due to record wheat and corn harvests and heightened geopolitical and currency pressures. Expanding harvests in Australia and Argentina add to the downturn, with Western Australia raising its wheat forecast. Analysts note the euro-dollar rate failed to support prices, which have fallen across global markets.
rain prices remain under pressure, which industry experts attribute to several factors, the German news portal Agrarheute reported on November 24.
The first reason, as cited by analysts, is the exceptionally high global wheat and corn harvest, which is putting downward pressure on grain prices. The second reason is that exchange rates and geopolitics are impacting grain marketing opportunities more than at any time in a long time.
Wheat prices remain under pressure due to the intensification of harvesting in Australia and Argentina. Last week, the Western Australian Grains Association raised its wheat production forecast by 0.42 million tonnes to 13.05 million tonnes. Last year, production was 12.45 million tonnes.
Western Australia accounts for about a third of the country’s total wheat production. According to the Buenos Aires Grain Exchange (BAGE), as of November 19, the wheat harvest in Argentina was 20% complete, compared to 29% a year earlier.
Analysts also note that the euro-dollar exchange rate was insufficient to support high wheat prices. A decline in wheat prices was observed not only on the European market but also on many other exchanges in both the Northern and Southern Hemispheres.
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Source : Ukr Agro Consult
