International grain futures weakened over the past week on the back of production and stock estimates, plus rain in areas that were suffering from drought. These things have weakened new-crop outlook slightly for the moment, but old-crop prices appear to be firm.

But wheat continues to be more pressurised than maize, mainly because of good wheat prospects from central European countries. Maize production is being reduced by dryness in Argentina and this is driving export demand from the US.

Demand for feed on the island is currently very high due to the poor growing conditions. This is likely to result in many mills having to come back into the market in the coming weeks. It is hoped that the favourable price of wheat relative to maize may result in increased demand for wheat in the months ahead.

Native prices remain broadly similar for nearby positions, with wheat to the trade around €177 to €178/t and barley running upwards from €182/t. New-crop positions have weakened slightly for the moment, with wheat at €173 to €174/t and barley around €170/t.

UK prices generally increased last week, mainly as a result of currency. Delivered wheat to East Anglia was up £0.50/t (£146), Yorkshire was up £1/t (£156.50) and central Scotland was up £1.50/t (£160). Average ex-farm wheat was up £1/t to £143.70, while barley was down slightly at £135.50/t.