International grain futures markets fell again last week, as market reports were generally positive on output, but negative on price.

Last week, a USDA report prompted a significant weakening of markets and this is exaggerated by currency. While that report decreased US wheat production even further, it raised world wheat production by 5.4 Mt. The Black Sea region was mainly responsible for this, with the combined Kazakh, Russian and Ukrainian wheat output raised by 9.0 Mt.

That said, markets are once again being primarily driven by low maize prices. The world has been growing more and more maize in recent years and the US continues to be less significant in global trade markets. The USDA report decreased US maize output, but it was still relatively bullish on maize and soya bean yields.

International price levels saw the EU reintroduce a €5.16/t import duty on maize last week.

Native prices are generally back this week. Spot wheat is back around €168 to €169/t, with November around €172/t and May estimated at €177/t. Spot barley is around €158 to €159/t dry, with November around €162/t and May around €167/t. Currently, the feeling is that green prices for spring barley will be lower than those paid for winter barley due to altered market sentiment.

The average feed wheat ex-farm price in the UK, as stated by the AHDB, has decreased from £148.30/t at the end of July to £134.60/t last weekend. Feed wheat delivered Belfast is down from £164 to £160/t in the same period. Currency remains a big factor in relative competitiveness.