International grain futures prices trended upwards over Christmas, probably more related to concerns for future production than anything to do with nearby supply. Currency continues to have an effect, particularly with regard to euro movement, but imported prices appear not to have dropped for the moment.

Markets remain characteristically quiet in this post-Christmas period, with little reports of trading. This is hardly surprising, given that most users had taken forward cover to at least the middle of January. That said, there is nothing in the market yet that supports improved price optimism for the months ahead.

Producers will hope for problems that will decrease production, but global production area is increasing rather than decreasing and so high output continues to look likely. Falling acreage is the first signal the market gets to indicate the need for higher prices. This is not happening.

Markets at home remain largely static and most prices tend to be nominal. Spot wheat remains in the €173 to €175/t range, with any May carry now virtually eliminated and €176 to €177/t suggested. November wheat is currently in the €170/t to €173/t range.

Barley is stronger, especially nearby. Spot barley is now €173 to €175/t, with €175/t for May. These prices are helped by the general scarcity and the fact that nearby imported barley is now more expensive than wheat. However, November barley is again discounted to wheat at €165 to €167/t.