International grain markets have strengthened significantly in the past week, following a sustained period of depressed or falling prices.

This has resulted in future grain markets showing in excess of a €25/t increase in the past week or so.

Since the week ending 19 June, MATIF wheat (French milling wheat) for December increased from €180/t to €202.75/t at the close of business last Tuesday. On Wednesday morning it increased by a further €3.75/t, but some of this latter increase was subsequently lost.

Grain prices in Chicago have also increased, with both wheat and barley rising by over 15% in recent days. However, as always, there is a likelihood of over-reaction in every price movement.

The price rise is being influenced by a number of different factors, such as reduced planting and drought in parts of Canada, continued extreme wet in parts of the US, dryness across a big part of southern Europe and other problems in India and China.

Native green feed barley price offers for September have moved above €145/t this week, with green wheat at €160/t.