Grain markets remain largely flat, with some seesaw movement driven by currency and fund activity. The forthcoming elections in Argentina are having an impact now, with a potential new government committing to reduce or abolish the current export taxes on oilseeds and maize. Such a move could free up exports from there.

In the meantime, the market is operating largely on a hand-to-mouth basis, with buyers unwilling to commit forward. The gap between futures and physical prices continues, making the futures market more attractive to those who can avail of it.

The result is that stores for the futures market in France are now full and have closed. This could have negative and/or positive consequences as it could result in a rally on the futures market.

The spot market continues to be under significant pressure, but prices remain largely flat. At this point, it would seem that the higher prices on offer for next May are being reeled in by the spot market. Spot wheat remains in the €170 to €175/t range, with barley in the €160 to €165/t bracket. May 2016 wheat ranges from €175 to €178/t, with barley €10/t lower. November 2016 prices have improved slightly, with €185 to €188/t now talked about, but the gap with barley appears to have drifted to €12/t for the dry position. On Friday of last week, Glanbia offered €153 and €143/t for green wheat and barley for harvest. However, this was €1/t lower by Wednesday.