Weather and currency hold the grain market in their grip

The weather developments regarding snow and frost are being closely monitored in the grain market. Additionally, currency developments continue to play an important role. Nevertheless, prices have slightly dropped again after the rise at the end of last week. The picture on Tuesday, February 3, is mixed. In Paris, prices dropped slightly, while in Chicago, a minimal price increase was observed. However, the differences are small. The primary reason for the different directions can be found in the currency rates. A stronger euro disadvantages the export position in the EU, which has led to slightly lower prices. The quotation for the March contract fell to €193.25 per ton in Paris. Nevertheless, the price is still €6 higher than the low point at the end of last week. The next delivery month currently holds a slight premium compared to May due to the current weather conditions. The May contract dropped to €191.50 per ton. In Chicago, wheat made a small step up to $5.28¾ per bushel. Thus, the price is nearly 10 cents lower than at the end of last week. Converted to European standards, the wheat price in Chicago is now €165 per ton. That is about €4 more than at the beginning of last week. The price of the May contract in Chicago is still slightly higher than that of March. May quotes $5.37¾ per bushel, or €167 per ton when converted. There is not much trading in wheat from the new harvest yet, but those prices are clearly above the current sales level. For deliveries in September, $567¾ per bushel is being paid, or €177 per ton. December quotes $5.85¾ per bushel or €182 per ton. In Paris, the differences with the new harvest are much smaller. September quotes €195.50 per ton in Paris, so barely above the current price level. December barely stays above €200 per ton with a closing quotation of €201.75 per ton on Tuesday. For now, it seems that there will be little change in that. On the local markets in the Netherlands, there are stable to slightly rising prices. The grain exchange in Groningen is increasing the prices for barley and wheat by €1 to €191 per ton this week. It does not help the market much, as very few deals are being made at this price level, notes the quotation committee in Groningen.