Euronext reiterates corn mycotoxin limits after rainy French harvest

Financial markets operator Euronext issued a notice on Thursday reiterating limits on mycotoxins in corn delivered against its futures contract, after a rainy harvest in France.

Mycotoxins are toxic substances produced by mould on crops, often in damp conditions, and can cause sickness when consumed by humans and animals. Corn is mostly used in livestock feed.

Euronext, whose corn (maize) futures are a price benchmark for the European market, said it was reminding participants that it applies maximum levels set out in European Union regulations, including a limit of eight parts per million for deoxynivalenol (DON), a common mycotoxin.

“Due to the corn quality in France this year, especially concerning the level of mycotoxins, Euronext has been receiving several questions over the past few weeks about the specifications in our corn contract,” the group added.

“The communication sent this morning acts as a reminder of the specifications, to avoid any misunderstandings.”

Physical delivery for corn traded on Euronext mainly takes place in France, with just one delivery silo available outside the country, at Ghent in neighbouring Belgium.

Corn quality in France, the European Union’s biggest grain producer, has been a market concern after heavy rain hampered autumn harvesting and traders cited reports of increased presence of mycotoxins.

However, unlike wheat, for which French production slumped to its lowest since the 1980s, the country’s corn output is estimated to have risen sharply with rain helping growth during summer.

Tags: futures, Euronext, mycotoxins, harvest, corn, price, France