The USDA grain report last week indicated a higher area of wheat in the US than had been expected (over 1 million acres more) and this was one of the factors that saw Chicago wheat futures fall again last week in both nearby and new crop positions.

The bearish tone in the report fundamentally led to the fall in both wheat and maize futures markets there. This subsequently affected European prices also, but mainly through currency movements.

A further upward revision in the size of the 2017 Russian wheat crop by 2Mt to 85Mt r added to the pressure on wheat prices.

Oilseed prices also came under further pressure in the past week following the USDA report and also what are still big output figures in South America. But soya bean imports into China remain strong and that continues to help price.

Native prices remain largely similar to last week, with barley still a stronger trade than wheat. Spot positions put wheat in the €173 to €175/t bracket, depending on location, while barley is tending to be a strong €175/t. November prices are tending towards €172 for wheat and €165 for barley, but some believe that barley will be stronger when the time comes. Ex-farm wheat price in the UK was put at £139.20/t at the end of last week, up £1.70/t and helped by currency movements. Delivered price in the UK was up and down last week depending on location – up £1.50/t in East Anglia (£141/t) and down £0.50 in Yorkshire (£150.50/t).