Grain markets showed a bit of excitement last week as wheat prices in particular rose on the back of fund activity covering forward in the light of weather concerns. Heavy rain in the US caused concerns for the quality of its hard red winter wheat crop, which is now very close to harvest. This is causing additional concerns, in that it could fail on quality and end up competing with maize on feed grains market.

The flip side is that rain in the Corn Belt is increasing the potential of emerging maize and soyabeans crops there. This is further pressurising markets and prices. But the same rain is also delaying the completion of planting and this could prove to be an issue in time.

The euro weakened further again recently and this is helping EU wheat competitiveness and exports. And in the US, news of even bigger soyabean harvests in the south, coupled with the strong dollar, has pushed down US Chicago prices.

However, oilseed rape prices are holding firm despite the drop in soya. Indications are for lower rape production (especially in Canada and Germany) in 2015.

Native prices are broadly similar to a week ago, but wheat price was higher towards the end of last week. Many farmers used the opportunity to unload stocks in what was always going to be an unsustainable market spike.

Spot wheat prices were again in the €173 to €175/t bracket midweek, with €155 to €160/t for barley. However, business was done at the end of last week for €178 for wheat and €160 for barley.

New crop prices are a bit stronger again this week. November wheat is around the €177/t mark and barley €160/t or a little higher.