It would seem that global economic uncertainty remains a major driver in world markets, not just for grain. But grain has certainly not escaped, as the combination of demand uncertainty, coupled with good output prospects so far for the 2020 crop, combine to negatively affect sentiment in futures markets.

Since 24 January, CBOT December wheat has dropped from €193.40/t to €169.40 in recent days and maize dropped from €140/t to €127.60/t. French MATIF also dropped from €190/t to €179.75/t in the same time span.

Local markets are also difficult. Many merchants report an inability to sell barley against imported maize at the moment, which is reportedly flowing in despite the value in native barley. That said, the combination of a lack of robust demand and an unwillingness to sell in this uncertain market makes native prices difficult to pin down.

Native prices remain largely as they were last week, with perhaps more pressure currently on nominal prices for new-crop sales. Everything is uncertain, not least the outlook for livestock products. But people will continue to eat, providing the distribution system remains free-flowing.

Nominal values to the trade for spot wheat remain in the €196 to €197/t bracket from here to May and barley remains in the €172 to €175/t bracket. New-crop prices are somewhat weaker at around €184/t for wheat and around €168 to €170/t for barley.