Stability in grain prices following a downward trend

The current trend in the grain market is characterized by price stability, after the first few months of the campaign in which the trend has been downward, according to statements for ECA of Secretary General of the Association of Commerce Grains and Oilseeds of Spain (ACCOE), Jose Manuel Alvarez. He has stated that the estimate for the rest of the campaign is that prices will not fall more than they have already done and are maintained stable, thanks to cyclical ups like that have been occurring at certain times.

By Milagros Jurado

From ACCOE it is clarified that, despite occasional increases prompted by factors of a different nature (economic, logistics, etc.), in any case the general tone of the grain market can be described as bullish. Thus, as explained by its general secretary, “in the last four or five years we have been attending abundant cereal production worldwide, which implies that, abiding by the law of supply and demand, prices tend to go down, not excluding that, at some point, they can climb due to circumstantial reasons”.

Alvarez explains that in a  market so global such as the grain market, prices are very sensitive to fluctuations in world production. “That globalization also explains that the” bad “cereals marketing of a producing country as important as France has not had an impact on the world grain market, having been offset by the excellent productions from other countries, including Spain”, he adds.

Since the campaign began, for the month of July, the different productions of cereals have been experiencing a fall in prices that currently remain stable, thanks to occasional blips.

Durum wheat has been the one that has fallen to 9%, followed by barley (4.6%), corn (4.5%) and wheat (4%)

As José Manuel Alvarez says, “next spring, when the crop estimates are made, we will know what next season may hold with regard to grain production in the Northern Hemisphere.”