After weeks of continuous increases, world prices of cereals (such as wheat and corn) and oilseeds (like soya and rapeseed) have begun to decline again. This is mainly attributed to the drop in oil prices and the favorable crop conditions in the United States. In fact, wheat prices have dropped from the Chicago stock exchange to the European market, with prices trading around 255 euros per ton on the September deadline, which is ten euros less than the previous week.
The decline in prices can be linked to the fall in oil prices, the positive start of the wheat harvest in the southern United States, and the excellent growing conditions for American corn and soybeans. Rapeseed prices have also fallen below 470 euros a ton after peaking at over 490 euros at the end of May.
According to the latest weekly report from the U.S. Department of Agriculture, growing conditions for corn in the American plains are rated as either “good” or “excellent” on 75 percent of corn acreage. This marks the best percentage since 2021 for the first report of the season. Despite this, delays in sowing in states like Illinois, Indiana, and Iowa are supporting US yellow cereal prices. Analysts also predict potential losses in corn acreage due to excessively wet conditions, which could benefit soybean prices.
Overall, the market is experiencing fluctuations due to various factors, including oil prices, crop conditions, and weather patterns. Observing these trends and staying informed can help investors and traders make informed decisions in the volatile agricultural commodities market.