Global Grain Markets Experience Significant Price Fluctuations

International grain markets have seen notable fluctuations in futures contract prices for wheat and corn, influenced by factors such as weather conditions, production estimates, and supply-demand dynamics, according to analyses by AllAboutFeed.

Wheat Price Developments

On the Chicago Board of Trade (CBOT), March 2025 wheat futures rose by 15.5 cents, reaching USD 205.58 per ton.

This increase can be attributed to factors such as unfavorable weather conditions in major producing regions and heightened demand in international markets.

In Europe, at the Euronext exchange in Paris, March 2025 wheat futures were quoted at EUR 232.00 per ton.

This figure reflects relative stability in the European market, despite challenges related to exports and competition in the global marketplace.

Corn Price Developments

In contrast, CBOT corn futures for March 2025 fell by 4.5 cents, settling at USD 189.76 per ton.

This decrease is linked to estimates of an expansion in corn cultivation areas in the United States, which could result in higher market supply.

At the Euronext exchange in Paris, March 2025 corn futures reached EUR 215.50 per ton.

This figure indicates a slight increase, possibly influenced by climatic conditions in Europe and strong domestic demand.

Influencing Factors

Currency exchange rate fluctuations have played a key role in price dynamics.

For instance, a decline in the EUR/USD exchange rate by 0.0134 to 1.0363 boosted the competitiveness of European exports, making them more attractive on the global market.

Additionally, oil prices had an indirect impact on production and transportation costs.

A decrease of USD 2.13 per barrel, settling at USD 72.53 per barrel for WTI crude oil, could reduce logistical costs, thereby influencing grain prices.

Outlook and Trends

Analyzing short-, medium-, and long-term trends reveals distinct variations:

• MATIF Wheat: In the short and medium term, the trend is upward, while in the long term, it remains downward.
• CBOT Wheat: The short-term trend is upward; however, the medium- and long-term trends are downward.

These trends reflect the complexity of the grain markets, where factors such as weather patterns, trade policies, and global demand dynamics play crucial roles in price determination.

Conclusion

By the end of February 2025, global wheat and corn markets showed mixed developments, influenced by a multitude of interconnected factors.