World: Major spring price rally on grains and oilseeds markets seems to be over

Due to South American crop damages, grains and oilseeds markets performed a major spring price rally, but have now fallen back to the levels of March/April. One large exemption are soybeans, which defended the higher price level in view of tighter supplies until next harvest in South America, H. M. Gauger GmbH reported early in July.

European wheat and barley had followed the U.S. markets half-heartedly or not at all, the analysts said.

On June 30, the USDA confirmed an unexpected large increase of the corn and small increase of the soybean acreage in the U.S., reinforcing the bearish market mood. In spite of corrected regulations on the major grain exchanges, the computer-programmed, high volume speculative trading of funds has led once again to irrational, huge price fluctuations, badly affecting the hedge business of trade and grain industries.

20 July, 2016