Market Update 3rd March 2023

Interesting market data from the French organic cereal market received this week.

It shows that their market peaked at around €450 (£400) for organic feed wheat in June of last year and has been falling ever since and has fallen particularly sharply since December 22 losing about €70 (£60) since then to stand at around €320 (£283) today.  Whilst the French conventional market has also fallen since last June it has only lost €120 (£106) through this period rather than the €180 (£159) the organic wheat market has lost.

This fall is attributed to an oversupply in milling wheat of about 100,000 tonnes and a fall in organic compound feed volumes of about 200,000 tonnes.  They are suggesting that some organic farmers will decertify due to this market volatility. 

There is an indication that new crop wheat will trade at around €400 (£353) delivered which would be about £330 ex farm.  The only slightly bullish sentiment they report is that the organic maize plantings are likely to be affected by low soil moisture levels which is supporting the maize price against wheat.