Grain prices on the international market
The grain prices are one of the main quotations on the international market, which directly impacts the world's animal production.
The grain prices are one of the main quotations on the international market, which directly impacts the world’s animal production.
During the month of June, grain prices have been on a downward trend. Economic analysts explain that these values have been decreasing according to recent quotations in the Chicago Stock Exchange.
At the end of May, grain prices increased dramatically according to the quotations of the Chicago Stock Exchange. At that time commodities reached their highest values recorded since 2013. Economic analysts attributed this increase to the drought faced by producing countries such as Brazil. On the other hand, the winter in the United States also had an impact on the grain prices.
Recently, there has been an adjustment in prices, which has normalized them. This decrease in historical prices is related to two main factors: The first factor is a good expectation about the weather situation in the United States, which would favor the production of raw materials. The second factor comes from China, as its adjustment in demand has also contributed to the drop in the grain prices in the international market.
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Grain prices: current market situation
In June, the price of raw materials decreased by 15%. Major grains such as wheat, corn, and soybeans had a respite at their prices. However, during July they have increased slightly again. The USDA reports that this increase may be due to increased exports from the United States, the world’s largest grain producer.
Wheat contracts for September traded higher, up to $6. As a result, wheat settled at US$247/ton.
On the other hand, soybean contracts for August traded lower, dropping 3 dollars. Finally, the soybean price closed the day at USD 531/ton. This change has been attributed to a lower quantity of soybeans processed with respect to production expectations.
Regarding corn, this grain also had a USD 2 drop in price. September contracts for corn were fixed at a price of 221 USD/ton. The price of corn decreased in its domestic demand in the United States, which explains this drop. However, U.S. corn exports remained stable.
Finally, China’s swine production has been recovering after the outbreaks of African Swine Fever. For this, thousands of breeding farms started production to recover pig populations and strengthen the pork market. The price of grains has varied greatly because of this decision since China is one of the world’s main importers of raw materials.