We have no good news, it turned out that this is how much wheat and corn actually cost in Hungary

Compared to last year’s prices, the price of wheat has risen significantly (Photo: Pixabay)

In its August forecast, the International Grains Council (IGC) indicates 778 million tons in 2022/2023. expected global wheat harvest in the economic year. The predicted consumption may be 783 million tons, so 275 million tons of wheat may remain in storage at the end of the season. According to Tallage, the harvest in the European Union was nearing its end at the beginning of August. The expected harvest is around 123.3 million tons, which would be 5 percent below the year 2021. The harvest results in South and South-Eastern Europe are mostly good, although they fall short of the previous year, but they are approaching the five-year average. In some parts of Central and Eastern Europe, a poor crop was harvested, while in Austria, the Czech Republic and Slovakia, a better crop was harvested. The harvest prospects are still good in the Northern European member states. The picture is also very mixed in terms of crop quality: the protein content in Germany and the northern part of France, and the specific weight in Spain and Eastern Hungary are lower than in previous years. Few phytosanitary problems were observed during the season, and the presence of mycotoxins was low (Tallage). In Hungary, according to AKI PÁIR data, edible wheat was traded at an average producer price of HUF 137.7 thousand per ton without VAT and transport costs in the second week of August. This price level was 88 percent higher than a year earlier. Feed wheat traded for HUF 133.9 thousand/ton (+87 percent) at the same time. On the Budapest Stock Exchange (BÉT), the September quotation of euro wheat was HUF 134.5 thousand/ton between August 8 and 19. The September stock exchange settlement price of ISCC NUTS II sustainable fodder wheat was 133.5 thousand HUF/ton in the indicated period. On the Chicago Mercantile Exchange (CME/CBOT), the September quotation for wheat was between 269 and 298 dollars/ton on the observed exchange days. At the same time, the September quotation of the crop on the Paris commodity exchange (Euronext/MATIF) fluctuated between 314 and 341 euros/ton.

This is how the corn stands now

According to the August projection of the IGC, the world could be 1,179 million tons in 2022/2023. economic year’s corn crop. The consumption is indicated at 1197 million tons, and the closing stock of the crop can be put at 265 million tons. In their August report, the experts of Tallage reduced the expected corn yield of the European Union by 10 million tons to 55.4 million tons compared to a month earlier. This output may be almost 21 percent below the previous year, the 2007/2008. may be the lowest since the economic year. Due to the warm, low-precipitation weather, the biggest losses are expected in Hungary, Romania, Italy and Croatia. The weather was somewhat more favorable in Austria and Poland, but a decrease in yield can also be expected in these member countries. In the EU, large areas of maize are likely to be harvested as silage to provide fodder for animals, as much of the pastureland has dried up. In Hungary, according to AKI PÁIR data, fodder corn changed hands at an average producer price of HUF 116.8 thousand/ton in the second week of August, which exceeded the previous year by 54 percent. On the BÉT, the ISCC NUTS II sustainable fodder corn quotation for November was HUF 130.5 thousand, December 131.5 thousand, and March 2023 HUF 134.5 thousand/ton between August 8 and 19. At the same time, the front-month quotation for corn on the Chicago Mercantile Exchange was between 240 and 252 dollars/ton. At the same time, the November settlement price of the crop on the Paris commodity exchange was in the range of 308-337 euros/ton.

AKI PÁIR