The year started with a drop in wheat prices

In the US and Europe, the past week has seen mixed trends in crop prices, with wheat and corn becoming cheaper in some markets but not all, while other crops like soybeans and rapeseed saw price increases. Despite the holiday season and reduced market activity, stronger crop yields are expected in 2024. US export sales of soybeans and wheat have been disappointingly low, contributing to grain market pressure. The uncertainty around renewable fuel programs, especially with the incoming Trump administration's stance on fossil fuels, is impacting soybean prices globally, with Indonesia's B40 program delay also influencing palm oil prices. The UN Food and Agriculture Organization reported a slight decrease in food prices in December, but they remained near 19-month highs. Technical analysis suggests possible price increases in corn, rapeseed, cocoa, rye, and oats in the US within the next month.

In the US, corn and wheat have become cheaper in the past week, but in the main markets, other major crop prices have all risen in the truncated week, when markets were closed on Tuesday and Wednesday. In 2024, prices fell in Chicago and London, but rose in Paris. In the past week, wheat prices in Chicago have become cheaper by 3.2 percent and corn by 0.7 percent, but soybean prices have risen by 0.1 percent and rapeseed prices by 2.4 percent. In Europe, only price increases were seen, with milling wheat prices up by 2.8 percent, corn by 3.2 percent, rapeseed by 1.2 percent and feed wheat by 1.3 percent. The new year is expected to bring stronger crop yields worldwide. “Trade has been quite choppy this short week and over the holidays, and we saw some consolidation on Friday,” said Karl Setzer, of Consus Ag Consulting. Much of the positioning comes ahead of next week’s WASDE report, the global agricultural supply and demand estimate released by the U.S. Department of Agriculture ...