Global markets once again struck a bearish tone last week, in part due to the reports released last week.

The USDA reported that US wheat is expected to be down around 4% from last year, which could be the lowest on record. However, the International Grains Council forecast for 2019/20 states that global wheat production could increase by 24Mt, helped in part by favourable planting conditions in Russia.

Furthermore, the USDA plantings report also highlighted a significant pickup in the expected 2019/20 maize area. While the damage caused by flooding in the US Midwest is expected to be in the billions, the full impact on grain stocks from damaged grain stores isn’t anticipated to have a significant impact on markets. Flooded ground will most likely be planted with soya beans later in the season.

The area planted to OSR in western Europe has declined for 2019/20. However, despite poor establishment and increased pest pressure, markets are still lacking support.

With another week of low-volume trading, native grain prices remain somewhat similar to last week. Spot prices for dry wheat are back slightly on last week, in the €205 to €207/t bracket. Spot dry barley is around €190/t, although with trade so low, this is an indicative price. This week Glanbia offered €183/t and €173 for dried wheat and barley respectively. Two weeks ago, Glanbia offered €147 and €157/t for green barley and wheat for harvest.

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