European cereals drop again
Harvest pressure and an upward revision of US corn acreage are dragging cereals down heavily.
Cereal prices continued to quickly slide into negative territory midway through Friday on Euronext. The market still blamed the USDA report of the day before, in which American corn acreage was revised upwards, while stocks on June 1 recorded a clear increase over one year.
Macroeconomic considerations and harvest pressure also continue to pull down winter cereals. Winter wheat harvests are indeed starting very early in France, while those of winter barley are already advanced to 41% according to FranceAgriMer, compared to barely 2% last year at the same period. The spring barley harvest is also starting early.
Around 1:30 p.m., Euronext wheat maturing in December 2022 eased by €4.75/t, to €339.75/t, while the September 2022 contract fell by €4.25/t, to €346/t. Euronext corn for November 2022 delivery fell by €3.25/t, to €293.50/t, the August 2022 term fell by €1.50/t, to €296.50/t.