Grain prices have taken on a slightly weaker tone this week as many of the major world producers continue to indicate record maize crops as harvesting gets underway.

Markets showed a slight price rally last Monday, probably as a result of increased tensions in Ukraine at that time. But they have since weakened on the back of a number of major crop output reports.

Wheat is under most pressure at the moment as big supplies, bolstered by significant milling rejection around Europe, add to the difficulty of finding end users.

This week’s HGCA report indicated that French traders were importing good quality milling wheat to mix with their own to help meet export specifications for quantities sold prior to harvest problems.

This report also indicated that at least one purchasing country had already sent a letter to traders stating that they would not accept shiploads of mixed origin wheat. This reaction could result in both upward and downward wheat price pressure in the weeks ahead.

Weaker prices

Prices here are a bit weaker this week reflecting the bigger harvest supply, as well as a weaker import market. Spot wheat is trading around €158 to €160/t with spot barley generally closer to €153/t. Higher prices continue to happen where end users are active in the market.

Prices are slightly stronger further out with €160/t talked about for November wheat and €163/t to €165/t on a run from December to March. November barley is also back on last week with €156/t to €160/t talked about ex-store up to Christmas.

In all instances, end users continue to pay above the trade prices quoted here because, for them, the price of future purchases could be higher and there could also be a substantial transport cost required to secure these supplies.