Spain's cereal and sunflower markets see sharp price rises

Cereal prices in Spain surged in July as international factors pushed wheat and corn higher. The conflict between Russia and Ukraine in the Black Sea and Azov‑Don corridor has reduced grain shipments, while the United States reports its lowest wheat‑acreage since the 1970s and a heat wave has damaged crops across Europe. Wheat futures rose 7 % in Chicago and added €18 per tonne in Paris, with corn up about 5 % in the United States and €8 per tonne in Paris. Soybean oil prices rose modestly, around 2 %.

In the domestic market, buyers remain cautious and sellers are delaying transactions, leading to limited trading activity. Meanwhile, sunflower cultivation in Andalusia has expanded to an estimated 240,000 ha, representing roughly 30 % of Spain’s total arable land. National production is expected to reach about 800,000 tonnes, with prices around €1,200 per tonne, supported by growing demand for vegetable oils and biodiesel amid the Iran conflict. The sector has the capacity to process 1.5–2 million tonnes of sunflower seed oil, and domestic processors prefer locally sourced feedstock.

Both trends reflect broader shifts in European agricultural markets driven by geopolitical tensions, climate impacts, and changing demand for plant‑based oils.