International grain prices fell back significantly since the release of the USDA acreage report last Friday. This put the planted US maize area at 37.1 million hectares, two million higher than trade estimations.

This has impacted negatively on the price of maize and it pulled down wheat also. However, there is still considerable concern that the final area may actually be much lower, as the US figures were based on survey intentions in early June.

While most do not believe the area numbers, they have acted to give the market a weaker tone.

US wheat markets followed maize down this week, having increased slightly in Chicago for the previous week. The fall in wheat price was more severe than for maize due to the current favourable outlook for global wheat production. This is helped by the increased area planted in Canada plus good prospects across Europe. While there are concerns arising from the recent European heat wave, this will mainly impact on maize production.

Oilseed rape markets may be looking a little stronger, based on supply, but there still seems to be a real demand issue here, which is affecting price.

Native prices are down on the weakened sentiment. Spot wheat is closer to €196 to €198/t, with barley below €170/t – the market is now looking mainly at new-crop. New-crop prices are also lower, with wheat around €185 to €187/t and barley back to €175/€177/t.