Grain futures have taken a heavy fall in the last week, where prices were mainly weighed down by strong market supply sentiment.

It is evident that concerns still linger around high Brazilian production and inevitably large exports and with last week’s USDA report showing increased global grain stocks on the back of large southern hemisphere crops, traders feel the market will be oversupplied.

Global oilseed futures also fell over the week, in response to the bearish estimates on soya beans from the report.

On a positive note, reports from US officials have indicated that Indian wheat imports will remain at the current elevated level next season, despite a near record harvest in the country.

India tends to swing between being a net importer and a net exporter of wheat, depending on the year, but news that the country plans to import 5m tonnes in the 2017/2018 season will come as a welcome boost for growers.

Europe

Grain prices from the Euronext exchange (MATIF) in Paris had started this week on a solid footing with wheat, maize and oilseed rape all recording price rises in the week prior. However, this week, futures prices for the same three commodities fell €8/t on average.

Milling wheat has fallen €4/t in the last week and is currently trading at just under €172/t. Maize prices also dipped in the last seven days, with June 2017 maize futures falling €6/t to €171/t.

The price of oilseed rape futures had been climbing well this year so far, but futures prices moved in the opposite direction last week. May 2017 rapeseed is currently trading at €408/t, a notable €13/t decline in futures prices for the last seven days.

Chicago

In Chicago (CME), May 2017 SRW wheat futures finished yesterday at $152/t (€142/t). This marks a substantial $16/t drop in the last week. US corn prices also recorded a price decline, with May 2017 corn closing at $140/t (€131/t).