Grain markets have moved upwards substantially following the release of Thursday’s World Agricultural Supply and Demand Estimates (WASDE) in the USA.

As indicated in the grain market report in this week's Irish Farmers Journal, wheat has become the main market driver, with global production and stocks estimated to be lower.

The maize production and stock numbers are also down, but maize markets have had a lesser price boost.

Increases

Following the report, the MATIF December futures increased by €9.50/t on Thursday evening and a further €7.75/t on Friday morning.

Price for September wheat increased even more and at 1.30pm on Friday, wheat contracts for September and December were at €257.25 and €257/t respectively.

On Tuesday of this week, the December contract closed at €237.75/t, giving an increase of almost €20/t in the past three days.

MATIF market

The MATIF market in Paris is the European futures market that provides an important indicator for price sentiment in the EU.

However, it must be stated that the rise in wheat prices is being driven more by milling wheat availability than feed and these price levels could push wheat price above maize, bringing it back into the reckoning for feed production.

It should also be noted that these are futures prices and physicals may not always follow in parallel.