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Futures markets continued on their merry dance last week in response to varying signals from different parts of the world. Indeed, they were actually torn in different directions by different drivers on different continents.
European futures firmed somewhat following news of unfavourable production conditions and reduced production estimates, while prices decreased in the US due to the ongoing and escalating trade tensions. However, it would since seem that prices have either stabilised or moved up in both continents this week.
Many estimates of wheat production were reduced last week, especially in the EU and Russia. However, there is still an optimistic tone for maize production, which is dampening wheat prices.
While there is a generally firmer tone to native markets, the shortage of buying or selling makes prices more nominal than real. Spot wheat is put at €195/t, with barley closer to €190/t. November prices are equally uncertain, with wheat currently put around €190/t and barley around €185/t.
UK delivered cereal prices trended down last week, with wheat delivered to east Anglia down £4/t to £158/t, with no change to Yorkshire at £169/t. Rape price was up £9.50/t to £309 in response to the estimated reduced production in the EU. Ex-farm price for feed wheat dropped £1.70 to £156.10/t, while barley increased by £1.40 to £144.50/t.
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