Wheat prices have risen, but are falling again due to improved weather conditions in key growing areas. There is a shortage of corn which is pushing up the price. Soy hulls are currently an interesting purchasing option.
Current weather conditions have a major influence on wheat prices. Initially with significant peaks on Matif, the market cooled down during the week due to improved weather forecasts for Russia and America. According to ABZ-Grondstoffen, weather conditions currently largely determine price movements. Despite the holidays in large parts of Europe (May 1, Labor Day, a holiday in Poland), Algeria submitted a wheat tender for July.
Furthermore, the market is fairly quiet due to the aforementioned holidays. There is little supply and demand. The focus of the market is now increasingly shifting to the new harvest. As far as maize is concerned, physical availability is currently tight. Two sea boats with wheat cannot yet reach our region, which has created a shortage at the front. This is reflected in the prices for short-term deliveries. As a result, they have risen rapidly. Furthermore, corn prices rose mid-week due to rising corn consumption for ethanol in the US. In addition, there are concerns about the persistent rain during corn sowing in the US corn belt. Although, according to ABZ Raw Materials, the rains are not necessarily unfavorable for the country, which is on the dry side.
Protein
There is quite a bit of volatility with soy. For example, these rose sharply in Argentina as a result of (almost) annual strikes. When these were over, prices quickly went downhill again. ABZ-Grondstoffen points to the sharply falling soy oil price. This ensures that the soy meal maintains its price level. The oil/scrap spread becomes large in this way. The high physical availability of soy, which was expected after the start of the South American harvest, has not yet become a reality. There are still few quotes from that continent. Soy sowing in the US is progressing steadily. Currently, 18 percent of the intended area has been sown. Rapeseed meal is currently very expensive. The reason for this is that ABZ-Grondstoffen points to the fact that there is little product available, resulting in high prices being paid. The cooperative thinks that the market may still be surprised that rapeseed is available than previously thought. This determines the availability of rapeseed meal. Good alternative products to reduce rapeseed meal consumption include sunflower meal and maize DDGS.
By-products
ABZ-Grondstoffen notes that beet pulp from the old harvest is still very expensive. Moreover, availability is not great and with higher grain prices there seems to be a bottom for a while. Low-sugar optional pulp is the most competitively priced. ABZ-Grondstoffen also points to the use of soy hulls. These are currently attractively priced while the availability of this product has also increased. Wheat grits trend a bit higher.
