International grain prices weakened somewhat over the past week, mainly as a result of significant selling by funds. But it would appear that this price movement may have reversed, leaving prices broadly similar to a week ago.

The price movements have been more pronounced in international markets and in some instances physical prices are higher than their futures equivalent. Over the past while, futures markets have reversed their new crop premium and now new crop prices are lower than spot.

HGCA report that Ukraine may be about to limit exports of milling wheat and this may help the wheat market. However, feed grains will still have the biggest impact on wheat prices here.

Currency is having an impact in all markets. The strong dollar continues to keep EU exports very competitive and this is helping internal prices to a fair degree. But domestic demand continues to be quite slow and this is putting more sellers than buyers in the nearby market. For the same reason the trade is now unwilling to purchase spot and this is resulting in some nearby discounting.

Lack of active demand is currently putting pressure on spot prices for those who need to sell. That said, the value of wheat remains around €180/t but some bits have sold below this. Spot barley is broadly similar, with price around €165/t. Some bits have sold for less to move product.

Buyers are now more inclined to look towards April/May positions, as product is not seen to be wanted in the near term. But the market remains unwilling to offer a carry for these positions so prices are now only a euro or two over spot.

The price premium which existed for new crop position next November has all but disappeared. November wheat is put somewhere in the €180 to €182/t bracket, with up to €185/t occasionally on offer. This week Dairygold offered €138/t for green feed barley and €148/t for green wheat.