European corn prices firm as heat wave and euro-dollar rates drive market

European corn prices are firming amid euro-dollar exchange rates and a heat wave affecting crops, market participants in Spain, Italy and the Netherlands said.

Platts, part of S&P Global Energy, assessed Spain ex-works corn at Eur223/metric ton ($253/mt) on June 24, up Eur2/mt from the beginning of the week and Eur7/mt higher week over week.

"Corn offers have remained almost unchanged for a few weeks at Eur222/mt, but bidding levels have increased from Eur218-Eur221/mt as of June 24," a Spanish broker said.

A trader confirmed the price movement, saying: "Prices have been affected by euro-dollar exchange rates." He added that higher corn prices were not limited to Spain, affecting markets across Europe.

An Italian trader said corn prices were rising in Italy as well, citing the heat wave as another reason. "The new corn harvest is being affected by the heat wave," they added.

At the same time in the Netherlands, a broker said corn offers and bids were increasing, following higher offers in the market amid euro-dollar exchange rates and the heat wave. He noted that lower water levels in France were affecting freight rates.

The broker also said that Dutch buyers were not yet in panic-buying mode. Despite rising prices, they had covered their immediate needs and were now waiting for clearer indications on the wheat, barley and corn harvest results before committing to further purchases.