The past week has seen global grain markets remain firm across the board, with markets closing slightly higher by end of trade last week. This was partially driven by renewed weather concerns over dry conditions in key US winter wheat states, South America, eastern Europe, southern Russia and Australia.

The easing of trade tariffs between the US and China has been welcomed by soya bean markets, as the reduction in tensions will likely help mitigate concerns regarding US exports to China. Elsewhere, ongoing Argentinian soya bean crop concern has added to the bullish tone in the market.

Closer to home, there’s a firm tone to market. However, there is little movement of physical grain, as both buyer and seller are holding back in hope of further price movements. Native spot prices are broadly similar, with wheat trading at close to €188/t, while barley, if it can be got, is back to €195 to €196/t as demand has reduced. New-crop prices for wheat remain either side of €184/t, with barley ranging €4 to €7/t above and below wheat.

Glanbia has announced 2018 green prices of €158/t for wheat and €153/t for barley, a gap of €5/t between the two crops.

Ex-farm prices for UK for May 2018 finished £0.60 lower to £151.40/t for wheat and £1.80 lower to £139.60 for feed barley. New-crop UK feed wheat futures (November 2018) gained £0.55/t last week to close at £152.50/t last Friday.

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Supplies set to tighten but market still volatile

International pressures leave scope for price optimism