International futures markets remained under pressure last week, as uncertainty continues over the impact of coronavirus on global wheat demand. In the short term, this is depressing the outlook for consumption and pressuring prices. There is also ongoing pressure arising from high output expectations from the Black Sea region. And currency remains a factor for all markets.

Maize has been even more volatile price-wise. It is also suffering from coronavirus concerns, which is sending a signal of decreased demand. But maize could also potentially benefit from the ongoing dry weather concerns in Argentina and Brazil, which may affect global supply.

What had been a strong oilseed rape market for the coming season appears to have been weakened by lower crude oil prices. While tight supply had helped prices up to now, some believe that there will be more volatility and weaker price levels into the future.

Native grain prices to the trade have weakened on the back of the current global sentiment. This is especially the case for wheat, which is back €3 to €4/t. This leaves spot wheat at around €196/t to the trade. Nearby barley is closer to €172/t. In both instances, sale direct to end users could be worth €3 to €4/t on either cereal. There is now little or no price carry from looking at a May selling option.

November prices have weakened also, with wheat to the trade now closer to €184/t and barley at about €170/t.