Cereal prices rise amid low supply and Black Sea tensions

Cereal prices are experiencing an upward trend due to limited domestic supply and geopolitical factors. In Spain, particularly in regions like Castilla-La Mancha and the Ebro Valley, low availability of barley is driving up costs for feed manufacturers. In Toledo, wheat prices reached 237 €/tm and barley 226 €/tm, while similar increases were noted in Albacete and Ciudad Real.

Internationally, markets in MATIF and Chicago have shown irregular movements. The decline in the euro/dollar exchange rate has provided support for wheat in MATIF. Traders are currently awaiting the USDA’s WASDE report, leading to profit-taking following recent price rises.

Global wheat markets remain influenced by the blockade of Russian and Ukrainian ports in the Black Sea, contrasted by Russia’s increasing use of Baltic Sea export routes. These factors are expected to heavily condition market conditions in the coming weeks.