International wheat futures prices eased slightly last week, following a recent jump precipitated by fund demand and wet conditions in Canada and parts of Australia. Maize price is being helped by the recent announcement that China intends to decrease internal maize production over the next five years via the removal of price supports. The recent AHDB market report said this is being done to reduce the country’s large aging maize stockpiles.

Harvesting difficulties continue in Canada where most areas received over 150% of normal rainfall in the past month and many areas got over 200% . One of its biggest wheat provinces, Saskatchewan, still has about 20% of its wheat to cut for the past month. The wet and snow have now caused lodging and quality downgrades seem inevitable – some land is not trafficable (sounds familiar).

The problems in Canada have the potential to impact favourably on both milling wheat and oilseed rape prices. Markets were hopeful that Canadian and Australian canola production would help counter the reduced oilseed rape production in the EU and Ukraine and so the Canadian situation is quite relevant. Elsewhere, moisture shortages continue to be an issue in parts of Europe.

Meanwhile, native prices are up slightly on last week, with nearby prices around €163/t for wheat and €152/t for barley. Prices for March to May currently run around €166 to €167/t for wheat, with barley around €154 to €156/t.