Currency has been the talking point on global grain markets this week.

With the dollar strengthening slightly against the euro, there has been a currency-based demand for old crop, particularly wheat.

December 2017 futures for MATIF wheat have increased from €172 to €174.5 in the past week. However, there are a number of other factors driving this rise too.

Maize prices are relatively high at present, with buyers possibly now seeing wheat as better value.

On top of this, certain parts of France are becoming dry and there is an element of concern regarding drought conditions.

However, this is purely on the back of speculation – it will be May or June before any persistent dryness could materialise. The fact that field work has also kicked off in a big way means that there is not a lot of selling going on either, further adding to competitiveness.

Closer to home, consumers have been more conservative this year when forward buying.

Last year, many were caught with stock that they couldn’t shift in what was a falling market as the year moved on.

There is a chance that some could be under-bought moving into the summer and a wet May could see spikes as they scramble to stock up.

Native wheat and barley are running at €164 and €178 respectively.

Corn ex-port is trading at €185, with soya bean at €350. Oilseed rape futures have come under further pressure. Spot price this week was €420, with November price at €385.