Report n.044 “RAW MATERIALS, CEREALS AND ECONOMIC SURROUNDINGS” year 13 of 14.06.24
CHICAGO last night: WHEAT +3| CORN +4.2| SEEDS +12.2| FLOUR +8.1| OIL +0.07
MINNEAPOLIS: SPRING WHEAT: 668.2 (-1.2)
MATIF last night: WHEAT -1.5| CORN -1.5| RAPESEED +3.25
Some reflections
The first graph represents thetrend in the price of community corn on the square in Milan from 01/01/23 to 11/06/24 (average min max € ton).
The second graph represents the price trend of protein soybean meal 46.50% on the Milan market from 01/01/23 to 11/06/24 (average min max € ton).
The above confirms that there has been a long decline in price values and now it is difficult to hypothesize its continuity.
I am writing this to you because too many still dream of continuous declineswhich we cannot exclude, but difficult to achieve due to a mix of factors dangerous: two/three Ukraine/Israel/Gulf wars, widespread weather problems, some raw materials now transformed into “conventional weapons”, the fact that world stocks are slightly decreasing.
From the opposite side the only bearish factor is the general decline in consumption.
A piece of advice: don’t challenge the market… or even the €/$ exchange rate, know that the pre-COVID price values don’t add up at the moment!
