February 11, 2016

Forecast of world's grain prices remains low

Prospects for the world's grain prices remain less than upbeat as Paris wheat futures fell for a tenth consecutive day, the Irish Examiner reported.

Reflecting the lacklustre demand for Europe' grain, Egypt did not acquire French products at two tenders last week. In the same period, Algeria bought wheat at a "very low" price, possibly between EUR158 to EUR160 (US$178.4 – US$180.1) per tonne said Pierre Tronc, a broker at French investment firm, Aurel BGC.

France, in the meantime, sees its grains suffering the longest slump in prices in five years. 

Additionally, the EU could potentially be burdened with an overwhelming supply as exports from the region slowed by 15% from the previous season.

Tronc also pointed to an instance of "panic selling", with French wheat for loading at the port of Rouen being put up for sale at a discount of EUR3 (US$3.39) per tonne to future prices.

For March's delivery, milling wheat slid 0.7% to EUR152.25 (US$172), the lowest for a most-active contract since July 2010, on the Euronext in Paris, according to the Irish Examiner.